TQQQ lost 80% in 2022 due to daily leverage reset, showing it's not for long-term holding.

ProShares UltraPro QQQ (TQQQ) lost about 80% in 2022, far worse than the Nasdaq 100's 34% drop, due to its daily 3x leverage reset mechanism. This daily reset compounds gains or losses off the new NAV, not the original price, causing significant decay in volatile or down markets. TQQQ is designed for short-term tactical use, not long-term holding, as its leverage and concentration risks can lead to large losses. Investors seeking amplified Nasdaq exposure should consider alternatives like margin loans or call options instead of holding TQQQ long-term.