Leverage Risk

However, this strategy can backfire in volatile markets, accelerating losses as much as gains. Yesterday's sell‑off serves as a reminder that leverage works both ways: while SOXL lost 23 % in a single session, TQQQ would have lost approximately 3 %. The article warns that leveraged ETFs are designed for traders, not investors, and their daily rebalancing can lead to poor long‑term performance.