Some insights on leveraged ETFs and their drawbacks. 3x Leveraged ETFs : What They DON'T Want You To Know "Leveraged ETFs like TQQQ and UPRO are a great way to stack up some serious losses. Sure, these funds offer triple the daily gains of the underlying index on a good day. But when volatility strikes, look out. Volatility drag, high fees, and excessive risk make these funds uninvestable from our point of view. Today, we'll uncover the truth behind leveraged ETFs and why we believe they shouldn't be used by anyone."
Actually the losses can be more than 3x. For example if you have $100 in QQQ and it drops 10% one day, then goes up 10% the next day you would have $100 x 90% x 110% = $99; i.e. a 1% net loss. But with TQQQ on the same days, you would have $100 x 70% x 130% = $91; i.e. a 9% loss.