USML vs. TQQQ

Last updated Jun 3, 2026

USML (ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN) and TQQQ (ProShares UltraPro QQQ) are both Leveraged Equities funds - USML tracks the MSCI USA Minimum Volatility Index while TQQQ tracks the NASDAQ-100 Index (300%). Both are passively managed. Over the past 5 years, USML returned 8.67%/yr vs 29.86%/yr for TQQQ. A 0.61 correlation means they provide meaningful diversification when combined. Both charge a 0.95% expense ratio.

Performance

USML vs. TQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) and ProShares UltraPro QQQ (TQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USML achieves a 4.25% return, which is significantly lower than TQQQ's 65.71% return.

USML

• 1D: 0.14%
• 1M: 4.47%
• YTD: 4.25%
• 6M: 4.48%
• 1Y: 4.31%
• 3Y*: 16.76%
• 5Y*: 8.67%
• 10Y*: —

TQQQ

• 1D: 1.37%
• 1M: 33.57%
• YTD: 65.71%
• 6M: 58.23%
• 1Y: 145.30%
• 3Y*: 69.92%
• 5Y*: 29.86%
• 10Y*: 45.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

USML vs. TQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN	4.25%	9.33%	23.97%	11.37%	-22.87%	42.12%
TQQQ ProShares UltraPro QQQ	65.71%	34.35%	58.27%	198.04%	-79.09%	57.96%

Correlation

The correlation between USML and TQQQ is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (All Time) Calculated using the full available price history since Feb 8, 2021	0.61

Over the past year, the correlation between USML and TQQQ has dropped to 0.36 - well below their long-term average of 0.61, suggesting their price drivers have been diverging.

Return for Risk

USML vs. TQQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

USML

USML Risk / Return Rank: 12
USML Sharpe Ratio Rank: 12
USML Sortino Ratio Rank: 12
USML Omega Ratio Rank: 12
USML Calmar Ratio Rank: 12
USML Martin Ratio Rank: 13

TQQQ

TQQQ Risk / Return Rank: 75
TQQQ Sharpe Ratio Rank: 89
TQQQ Sortino Ratio Rank: 69
TQQQ Omega Ratio Rank: 68
TQQQ Calmar Ratio Rank: 79
TQQQ Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

USML vs. TQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) and ProShares UltraPro QQQ (TQQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	USML	TQQQ	Difference
Sharpe ratio Return per unit of total volatility	0.26	3.07	-2.81
Sortino ratio Return per unit of downside risk	0.48	3.19	-2.71
Omega ratio Gain probability vs. loss probability	1.06	1.42	-0.36
Calmar ratio Return relative to maximum drawdown	0.34	4.08	-3.74
Martin ratio Return relative to average drawdown	1.03	13.38	-12.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USML vs. TQQQ - Sharpe Ratio Comparison

The current USML Sharpe Ratio is 0.26, which is lower than the TQQQ Sharpe Ratio of 3.07. The chart below compares the historical Sharpe Ratios of USML and TQQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	USML	TQQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.26	3.07	-2.81
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.36	0.45	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.69	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.74	-0.29

Drawdowns

USML vs. TQQQ - Drawdown Comparison

The maximum USML drawdown since its inception was -35.34%, smaller than the maximum TQQQ drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for USML and TQQQ.

Drawdown Indicators

	USML	TQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-35.34%	-81.66%	+46.32%
Max Drawdown (1Y) Largest decline over 1 year	-13.09%	-36.97%	+23.88%
Max Drawdown (3Y) Largest decline over 3 years	-19.14%	-58.04%	+38.90%
Max Drawdown (5Y) Largest decline over 5 years	-35.34%	-81.66%	+46.32%
Max Drawdown (10Y) Largest decline over 10 years	—	-81.66%	—
Current Drawdown Current decline from peak	-2.48%	0.00%	-2.48%
Average Drawdown Average peak-to-trough decline	-10.42%	-18.53%	+8.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.33%	11.28%	-6.95%

Volatility

USML vs. TQQQ - Volatility Comparison

The current volatility for ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) is 4.03%, while ProShares UltraPro QQQ (TQQQ) has a volatility of 13.26%. This indicates that USML experiences smaller price fluctuations and is considered to be less risky than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USML	TQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.03%	13.26%	-9.23%
Volatility (6M) Calculated over the trailing 6-month period	11.54%	36.05%	-24.51%
Volatility (1Y) Calculated over the trailing 1-year period	16.33%	47.63%	-31.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.47%	66.55%	-42.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.29%	65.98%	-41.69%

USML vs. TQQQ - Expense Ratio Comparison

Both USML and TQQQ have an expense ratio of 0.95%.

Dividends

USML vs. TQQQ - Dividend Comparison

USML has not paid dividends to shareholders, while TQQQ's dividend yield for the trailing twelve months is around 0.36%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TQQQ ProShares UltraPro QQQ	0.36%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USML and TQQQ in my portfolio?

USML and TQQQ have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USML or TQQQ?

TQQQ has higher volatility (13.26%) compared to USML (4.03%). In terms of maximum drawdown, USML dropped -35.34% vs TQQQ's -81.66%.

Which ETF is better, USML or TQQQ?

On 5-year performance, TQQQ leads with 29.86% vs 8.67% for USML. Both ETFs have the same 0.95% expense ratio. On volatility, USML has been the lower-risk option at 4.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USML or TQQQ?

Over the 5-year period, TQQQ has performed better with a 29.86% return vs 8.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USML or TQQQ?

USML and TQQQ have the same expense ratio: 0.95% per year.

Which ETF pays a higher dividend yield, USML or TQQQ?

TQQQ has the higher dividend yield at 0.36%, compared with 0.00% for USML.

What is the main difference between USML and TQQQ?

USML tracks MSCI USA Minimum Volatility Index, while TQQQ tracks NASDAQ-100 Index (300%). They also come from different issuers: UBS and ProShares.

Which has better risk-adjusted returns?

TQQQ currently has the higher Sharpe Ratio (3.07 vs 0.26), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.