Indexes, ETFs
| Index/ETF | Focus | Ticker | Leveraged ETF (2x/3x) | Inverse Leveraged ETF (-2x/-3x) | Tax |
|---|---|---|---|---|---|
| S&P 500 Index | Tracks the performance of 500 large U.S. companies. | SPX | ProShares Ultra S&P500 (SSO) – 2x | ProShares UltraShort S&P500 (SDS) – -2x | 60/40 tax (see below) |
| SPDR S&P 500 ETF | An ETF that seeks to replicate the S&P 500 Index; | SPY | |||
| Vanguard S&P 500 ETF | An ETF that seeks to replicate the S&P 500 Index; Large-cap U.S. equities | VOO | ProShares UltraPro S&P500 (UPRO) – 3x | ProShares UltraPro Short S&P500 (SPXU) – -3x | |
| Nasdaq-100 Index | Represents 100 of the largest non-financial companies on the Nasdaq; Technology and growth stocks | NDX | ProShares Ultra QQQ (QLD) – 2x | ProShares UltraShort QQQ (QID) – -2x | 60/40 tax (see below) |
| Invesco QQQ ETF | Tracks the Nasdaq-100 Index; Technology and growth stocks | QQQ | ProShares UltraPro QQQ (TQQQ) – 3x | ProShares UltraPro Short QQQ (SQQQ) – -3x | |
| Dow Jones Industrial Average | Comprises 30 large publicly owned companies based in the U.S.; Blue-chip U.S. stocks | DJIA | ProShares Ultra Dow30 (DDM) – 2x | ProShares UltraShort Dow30 (DXD) – -2x | |
| SPDR Dow Jones ETF | An ETF that tracks the Dow Jones Industrial Average; Blue-chip U.S. stocks | DIA | – | ProShares UltraPro Short Dow30 (SDOW) – -3x | |
| Russell 2000 Index | Measures the performance of 2,000 small-cap U.S. companies; Small-cap U.S. equities | RUT | ProShares Ultra Russell2000 (UWM) – 2x | ProShares UltraShort Russell2000 (TWM) – -2x | |
| iShares Russell 2000 ETF | An ETF that aims to track the performance of the Russell 2000 Index; Small-cap U.S. equities | IWM | Direxion Daily Small Cap Bull 3x (TNA) – 3x | Direxion Daily Small Cap Bear 3x (TZA) – -3x | |
| MSCI EAFE Index | Represents large- and mid-cap stocks across 21 developed markets, excluding the U.S. and Canada; International developed markets | EAFE | ProShares Ultra MSCI EAFE (EFO) – 2x | ProShares UltraShort MSCI EAFE (EFU) – -2x | |
| iShares MSCI EAFE ETF | An ETF that tracks the MSCI EAFE Index; International developed markets | EFA | – | – | |
| MSCI Emerging Markets Index | Captures large- and mid-cap representation across 27 emerging market countries; Emerging markets | MXEF | Direxion Daily Emerging Markets Bull 3x (EDC) – 3x | Direxion Daily Emerging Markets Bear 3x (EDZ) – -3x | |
| Vanguard FTSE Emerging Markets ETF | An ETF that tracks the performance of emerging market stocks; Emerging markets | VWO | – | – | |
| Bloomberg Barclays US Aggregate Bond Index | Measures the performance of the U.S. investment-grade bond market; U.S. bonds | AGG | – | – | |
| iShares Core US Aggregate Bond ETF | An ETF that seeks to replicate the Bloomberg Barclays US Aggregate Bond Index; U.S. bonds | AGG | – | – | |
| VIX (CBOE Volatility Index) | Measures the market’s expectation of 30-day volatility; Market volatility | VIX | ProShares Ultra VIX Short-Term Futures (UVXY) – 2x | ProShares Short VIX Short-Term Futures (SVXY) – -1x | |
| iPath Series B S&P 500 VIX Short-Term Futures ETN | Tracks the S&P 500 VIX Short-Term Futures Index; Market volatility expectations | VXX | – | – | |
| FTSE NAREIT All Equity REITs Index | Tracks the performance of U.S. equity REITs; Real estate investment trusts (REITs) | FNRE | – | – | |
| Vanguard Real Estate ETF | An ETF that tracks the performance of the FTSE NAREIT All Equity REITs Index; Real estate investment trusts (REITs) | VNQ | – | – | |
| ARK Innovation ETF (ARKK) | An actively managed ETF focusing on companies involved in disruptive innovation; Disruptive innovation | ARKK | – | Tuttle Capital Short Innovation ETF (SARK) – -1x |
60/40 Tax Treatment
SPX Options (Index Options)
SPX options are classified as Section 1256 contracts, which receive the 60/40 tax treatment. This means:
60% of gains (or losses) are treated as long-term capital gains,
40% are treated as short-term capital gains,
regardless of how long you hold the position.
As a result, even short-term trades may benefit from the preferential long-term rate, potentially lowering your overall tax bill.
SPY Options (ETF Options)
Treated as equity options, SPY option profits are taxed based on how long the position is held:
Short-term gains (held less than one year) are taxed at ordinary income rates.
Long-term gains (held longer than one year) qualify for lower tax rates—but many option trades are short-term, so often taxed at the higher rates
Tax-advantaged alternative to QQQ
QQQ is an ETF, so QQQ options are taxed like equity options (short-term = ordinary income rates, long-term = long-term capital gains). No Section 1256 benefit.
The index option equivalent is NDX (NASDAQ-100 Index options).
NDX options are Section 1256 contracts, so they get the same 60/40 tax treatment as SPX.
They are also European-style, cash-settled, no early exercise risk.
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