TQQQ returned 59.18% vs. QQQ's 24.99%, but leverage costs and daily resets reduce its triple return over time.

Over the past year, the leveraged ETF TQQQ gained 59.18%, while the non-leveraged QQQ gained 24.99%. Although TQQQ aims to deliver triple the daily returns of the Nasdaq-100, its performance over longer periods falls short due to three main factors: daily reset compounding effects, financing costs from swap agreements, and a higher expense ratio. These factors cause TQQQ's returns to deviate from a simple triple multiple of QQQ's returns. Investors should view TQQQ as a short-term trading tool rather than a long-term investment due to these structural limitations.