UPRO vs TQQQ:
Should you add one or both to your leveraged ETF strategy?
UPRO and TQQQ are both 3x leveraged ETFs, offering increased exposure to the return of different market segments. UPRO tracks the S&P 500, providing leveraged broad and overall market exposure, while TQQQ follows the tech-heavy Nasdaq-100.
Comparing UPRO vs TQQQ, head to head.
Below is generic comparison based on fundamental features of leveraged ETFs. It serves as a good starting point to understanding the purpose of each of these ETFs and how our technology might operate on them. Of course there's much more to it, but this should provide a good overview.
| Feature | UPRO | TQQQ |
|---|---|---|
| Underlying Index The benchmark index that the ETF aims to triple the daily performance of. | S&P 500 | Nasdaq-100 |
| Leverage Factor The multiple by which the ETF aims to amplify the daily returns of its underlying index. | 3x Daily | 3x Daily |
| Expense Ratio Annual fee charged by the fund, expressed as a percentage of assets. | 0.92% | 0.95% |
| Sector Focus The primary industry sectors represented in the ETF's underlying index. | Broad Market | Tech/Growth Heavy |
| Avg. Daily Volume The average number of shares traded daily, indicating liquidity. | ~5 million shares | ~30 million shares |
| Beta (vs. S&P 500) Measure of volatility relative to the S&P 500. Higher beta indicates higher volatility. | ~3.0 | ~3.5 |
| Tracking Error Divergence between the ETF's returns and three times the underlying index's returns. | Lower | Higher |
| Volatility Degree of variation in the ETF's price over time. | High | Very High |
| Rebalancing Frequency How often the fund adjusts its holdings to maintain the stated leverage ratio. | Daily | Daily |
| Best Use Case Typical market conditions or strategies where this ETF might be most effective. | Broad Market Momentum | Tech Sector Momentum |
| Risk Level Relative measure of potential for loss or underperformance. | High | Very High |
| Diversification Degree of variety in the ETF's underlying holdings across different sectors or companies. | More Diversified | Less Diversified |
| Correlation (to each other) The degree to which UPRO and TQQQ tend to move in relation to each other. | High but not perfect |
Building wealth with a strategy that leverages UPRO and TQQQ is done by limiting losses, not chasing gains.
How many times has your portfolio been performing well, only to come crashing down during the next market correction? Studies show that avoiding the market's worst days reaps higher long-term returns than chasing gains.
alphaAI automatically manages risk related to UPRO and TQQQ in response to real-time market conditions.
Leverage time-tested methods to actively manage risk and avoid the common pitfalls of investing. Eliminate emotion, reduce your losses, and harness the growth derived from automated risk management.
S&P 500
Total Return
Total Return
S&P 500
Discover why we're better. | alphaAI | Betterment | Wealthfront |
|---|---|---|---|
High-Upside, Leveraged ETF Strategies Leveraged and inverse ETFs have the potential to deliver greater returns and losses than their underlying benchmark indices. Leveraged ETFs are associated with a higher level of risk than unleveraged ETFs and are only suitable for investors who understand these risks and have a high-risk tolerance. |  | ||
Smart Stash: Earn 6%+ Yield Smart Stash is an intelligent cash management solution where excess cash in your alphaAI account will automatically earn market-leading yield. | | ||
| Dynamic Portfolio Adjustments Dynamic portfolio adjustments are defined as actions taken to optimally position a client portfolio for changing market conditions based on their investor profile and risk tolerance. | | ||
| Responsive Downside Protection Responsive downside protection is defined as actions taken in response to market conditions to protect clients from losses. | | ||
| Automated Risk Management Automated risk management is defined as the automatic adjustment of client portfolio risk levels (such as net exposure, beta, and R2) in response to market conditions. | | ||
| Automated Portfolio Hedging Automated portfolio hedging is defined as the management of net exposure and long/short positions to hedge portfolios against potential market drawdowns. | | ||
| Personalized Portfolios Personalized portfolios refer to the creation of a portfolio that is tailored to a client’s investor profile, preferences, and goals. | | | |
| Automated Rebalancing Technology-driven process to realign the proportions of assets in a portfolio as per desired allocation. | | | |
Frequently Asked Questions
Find answers to common questions about alphaAI.
How does alphaAI work?
At alphaAI, every strategy has four modes: Surge, Steady, Cautious, and Defense. Our Investment AI will automatically switch between modes based on market conditions.
The idea is simple: When the market looks good, we invest more to help you earn more. When the market seems risky, we invest less to help protect your money.
How does alphaAI use AI?
We use AI to automate the entire investment process, from beginning to end.
At the core of our industry-leading AI system is a team of predictive machine learning models. These models are trained on decades of data from more than 10,000 global stocks, analyzing over 10 billion data points on average. Each model is built for a specific purpose, and together they work as a team to make smarter trading decisions.
Our portfolio management system then takes these predictions and uses a clear, rules-based process to decide how to act. This includes making trades and managing risk, all tailored to your unique investor profile. Plus, we’ve built in multiple safety measures to ensure that every decision stays within strict, pre-defined limits.
Is it safe to let AI handle my money?
Yes, absolutely! There’s no chance our AI will take unexpected actions – and here’s why.
At its core, AI is simply machine learning (ML), which is a branch of math that uses models to find and learn from patterns in data. We use these predictive models alongside a clear, rules-based system to make trades and manage risk, all tailored to your unique investor profile. To add an extra layer of protection, we’ve built in multiple safety protocols to ensure every action stays within strict guidelines.
So, there’s no need to worry – AI isn’t sentient, and it can’t make its own decisions. It’s just a tool we use to process data and generate smart, reliable investment strategies.
Are there any hidden fees? What’s the actual price?
At alphaAI, we don’t believe in the traditional management fee model. Why should your costs go up as your assets increase?
We charge a single, flat subscription fee. This is the only way we make money. We do not charge account opening fees, minimum account fees, withdrawal fees, or account closing fees.
At alphaAI, our mission is to make sophisticated investment strategies accessible to everyone! We pride ourselves in our affordable and transparent pricing.
Is alphaAI really free up to $1,000?
Yes, alphaAI is 100% free up to $1,000! You worked hard for your money, and we want you to make the most informed decision on where to invest it. Try alphaAI out by starting off small. Get to know our platform and how our Investment AI works. Increase your capital if and when you feel comfortable. You pay only when the value of your account exceeds $1,000.
What is the minimum account size?
Get started with as little as $100!
How is alphaAI different from other roboadvisors?
alphaAI is the only roboadvisor that adjusts your portfolio to the markets in real-time. Other roboadvisors use a purely passive investment approach, which leaves you unable to take advantage of market trends.
At alphaAI, we use responsive investment strategies to manage your risk. The idea is simple: When the market looks good, we invest more to help you earn more. When the market seems risky, we invest less to help protect your money.
What is alphaAI’s investment philosophy? How do you control risk and drawdowns?
Our goal is simple: deliver better risk-adjusted returns than the market.
Our AI system adjusts your strategy to your unique investor profile and risk tolerance. We adapt your portfolio’s risk level to the markets in real time, helping keep your portfolio’s volatility and drawdowns within your defined acceptable range.
Why does alphaAI focus on leveraged ETFs? Aren’t they highly risky?
We focus on leveraged ETFs because they have the potential for big returns. For example, TQQQ has delivered an average return of 41% per year since it started. That’s the kind of growth that gets us excited — and if it excites you too, you’re exactly the type of client we’re built for.
But it’s important to understand both sides of the story. While TQQQ has delivered strong long-term results, it also lost 80% in 2022, which is completely unacceptable from an investment standpoint. That’s exactly the kind of risk we work hard to manage. Our main focus is protecting you from those big losses by using automated tools to adjust how much of your portfolio is invested based on market conditions and your personal risk tolerance.
To give you some perspective, the S&P 500 has an average annual volatility of 20% — think of volatility as a way to measure how much risk you’re taking. With our technology, you decide how much risk you’re comfortable with — less, more, or about the same as the S&P 500 — and our AI takes care of the rest to keep your portfolio on track, with the goal of delivering better returns than the level of risk taken on.
Learn about why loss minimization is the key to building wealth.
How hands-on or off is alphaAI?
alphaAI is completely hands-off – set it and forget it!
All you have to do is set your investor profile and customize your strategies. After that, we take care of everything for you. We automatically make trades and manage your portfolio’s risk in response to market conditions. Our leading-edge AI system stays on top of the market so you don’t have to. Rest easy knowing that regardless of what the market does, we are responding in the best way for you and your financial goals.
What assets can I invest in through alphaAI?
Our strategies are optimized for ETFs, including leveraged and inverse ETFs. We will be adding additional asset classes in the future.
Learn more about ETFs and how they could help you achieve your investment goals.
