TQQQ VS FAS: A Comprehensive Comparison of ETFs
4 min read
By Ron Koren, ETF Insider

TQQQ VS FAS: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, offering diversified exposure across various sectors and asset classes. In this article, we will undertake a comprehensive comparison between two prominent ETFs: TQQQ (ProShares UltraPro QQQ) and FAS (Direxion Daily Financial Bull 3x Shares). Our exploration will encompass key elements such as tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

TQQQ VS FAS: Overview

TQQQ and FAS represent two ETFs that cater to different investment strategies within the tech and financial sectors, respectively. TQQQ aims to provide triple the daily returns of the NASDAQ-100 Index, while FAS seeks to triple the daily returns of the Russell 1000 Financial Services Index. This divergence in focus leads to varying exposures and risks, which we will dissect in the upcoming sections.

TQQQ VS FAS: Sectors and Top Holdings

The TQQQ ETF focuses on the technology sector and is heavily invested in the top holdings of the NASDAQ-100 Index, including companies like Apple, Microsoft, and Amazon. On the other hand, FAS concentrates on the financial sector, holding shares of major financial institutions such as JPMorgan Chase, Bank of America, and Wells Fargo. Understanding the sectors and top holdings aids investors in making informed decisions aligned with their investment objectives and risk tolerance.

TQQQ overlap TQQQ VS FAS: A Comprehensive Comparison of ETFsTQQQ overlap TQQQ VS FAS: A Comprehensive Comparison of ETFs

TQQQ VS FAS: Capitalization and Strategy

TQQQ has garnered substantial assets under management (AUM) due to its popularity among investors seeking leveraged exposure to the tech sector. FAS's strategy centers on capitalizing on the performance of financial services companies. The divergence in capitalization and strategy between the two ETFs results in varying potential returns and risk levels, necessitating careful consideration by investors.

TQQQ VS FAS: Tracking and Exposure

TQQQ endeavors to offer investors three times the daily movement of the NASDAQ-100 Index, making it a leveraged option for those bullish on the tech sector. FAS, similarly leveraged, seeks to triple the daily performance of the financial services sector. TQQQ accomplishes its tracking through derivatives, while FAS employs a similar approach. Familiarizing oneself with these distinct tracking and exposure methods assists investors in selecting the ETF that aligns with their investment objectives.

Conclusion

TQQQ and FAS are distinct ETFs, each catering to a specialized approach within the tech and financial sectors. For investors seeking comprehensive insights into holdings, correlations, overlaps, and other valuable information, ETF insider offers an invaluable tool. With its user-friendly app, it delivers extensive details on these and other financial instruments, enabling investors to make more informed decisions.

Disclaimer: This article does not provide any investment advisory services.

TQQQ ETF issuer
TQQQ ETF official page

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