Retail Traders Rush Into Leveraged Tech ETFs, Betting On Nasdaq Rebound After Sharp Drop

As the Nasdaq 100 reeled from April's tariff-driven sell-off, retail traders doubled down on risk rather than retreating, injecting billions into ultra-leveraged tech ETFs in a high-stakes bet on a swift market rebound.

While the Invesco QQQ Trust QQQ — the world's largest ETF tracking the Nasdaq 100 — pulled in $4.44 billion in inflows last Thursday, marking its biggest single-day influx since March 2021, the real fireworks erupted in the most leveraged corner of the tech market.

The trading activity revealed a bold resurgence of dip-buying appetite, particularly in vehicles designed to magnify returns from the Nasdaq 100 Index.

TQQQ Becomes The Go-To Vehicle For Tech Dip-Buying Mania

According to ETF.com's senior analyst Sumit Roy, "Nowhere is this phenomenon more obvious than in the ProShares UltraPro QQQ TQQQ, the No. 1 ‘buy-the-dip' target among traders."

Despite plunging 57% from its February high to its early-April trough, traders continued pouring money into the ETF.

Since Feb. 19, TQQQ has seen $7.1 billion in net inflows—$3.1 billion of which arrived after April 2, the day President Donald Trump reignited trade war fears by announcing new "reciprocal tariffs" on all trading partners.

This surge in interest reflects not just dip-buying behavior, but leveraged dip-buying, underscoring a growing appetite for risk in a market environment defined by geopolitical uncertainty and heightened volatility.

On April 3, the ETF dropped 16%, followed by another 18% loss on April 4. Then, just five days later, it rocketed 35% higher.

From its low on April 9, TQQQ has surged nearly 30%, clawing back losses but still sitting 45% below its February peak. The Nasdaq 100 itself dropped 23% at its worst point during the same stretch.

History Repeats? Traders Eye 2022-24’s 477% Rally

The current setup has echoes of the 2022 bear market. Back then, the Nasdaq 100 tumbled 35% from peak to trough amid aggressive Federal Reserve rate hikes.

TQQQ lost a staggering 80% during that period—but for those who caught the exact bottom, the rewards were extraordinary. The ETF rallied 477% between its 2022 low and its December 2024 peak.

“The prospect of that type of massive gain is luring traders to pour money into the ETF,” said Roy.

“Of course, there's no guarantee that things will play out like they did last time. In fact, the only thing you can count on with TQQQ is volatility,” he added.

Despite the broader economic uncertainty tied to tariffs, traders seem undeterred, leaning into heightened volatility in search of strong upside potential.

The takeaway from recent flows is clear: investors are ready to ride out the market's twists and turns.

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