Average Daily Volume
87.42M
Fund Overview
The ProShares UltraPro Short QQQ (SQQQ) is an inverse-leveraged ETF designed to provide -3x the daily performance of the Nasdaq-100 Index. This means that for every 1% decline in the Nasdaq-100 Index, SQQQ aims to rise by approximately 3%, and vice versa. SQQQ is primarily used by traders seeking to profit from short-term declines in the tech-heavy Nasdaq-100 or to hedge against market downturns. Due to its leveraged and inverse nature, SQQQ is not suitable for long-term holding and is intended for sophisticated investors who understand the risks of daily reset leverage.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / Yes
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
N/A
- Dividend Date
-
Why Invest in the SQQQ ETF?
Potential Benefits
- Provides -3x daily leveraged inverse exposure to the Nasdaq-100 Index, allowing traders to magnify short-term gains during market declines.
- Can serve as an effective hedging tool for investors with long positions in tech stocks or the broader market.
- Liquidity is high, with tight bid-ask spreads, making it accessible for active traders.
- No need for margin accounts or short-selling restrictions, unlike traditional short positions.
Potential Risks
- Leveraged and inverse ETFs are designed for daily performance and can deviate significantly from expected returns over longer periods due to compounding effects.
- Extremely high volatility makes SQQQ unsuitable for buy-and-hold investors.
- Performance may diverge from the Nasdaq-100 Index in volatile or sideways markets.
- Potential for substantial losses if the Nasdaq-100 rises unexpectedly.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-3.3%
|
+6.9%
|
+14.5%
|
-35.8%
|
-26.3%
|
-3.1%
|
+20.4%
|
-11.9%
|
+0.3%
|
-
|
-
|
-
|
| 2025 |
-6.8%
|
+8.2%
|
+23.8%
|
-19.0%
|
-23.6%
|
-16.5%
|
-5.9%
|
-2.6%
|
-13.8%
|
-13.6%
|
+4.0%
|
+2.4%
|
| 2024 |
-5.0%
|
-14.0%
|
-3.1%
|
+14.0%
|
-16.2%
|
-15.7%
|
+3.7%
|
-4.5%
|
-8.1%
|
+2.8%
|
-14.3%
|
-1.7%
|
| 2023 |
-27.1%
|
-0.6%
|
-24.5%
|
-1.4%
|
-20.4%
|
-16.9%
|
-10.6%
|
+4.7%
|
+17.3%
|
+6.2%
|
-26.2%
|
-14.4%
|
| 2022 |
+25.9%
|
+9.0%
|
-17.3%
|
+45.6%
|
-3.5%
|
+24.4%
|
-32.3%
|
+14.0%
|
+35.1%
|
-15.4%
|
-20.3%
|
+30.9%
|
| 2021 |
-3.1%
|
-1.6%
|
-9.4%
|
-17.0%
|
+1.7%
|
-17.4%
|
-8.8%
|
-12.2%
|
+17.9%
|
-21.3%
|
-7.1%
|
-5.9%
|
| 2020 |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
+11.7%
|
+4.9%
|
-29.3%
|
-14.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: SQQQ vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SQQQ achieves its -3x daily inverse exposure to the Nasdaq-100 Index primarily through derivatives such as swaps and futures contracts. The fund does not directly short stocks but instead uses financial instruments to replicate the inverse performance. The Nasdaq-100 Index is market-cap-weighted, meaning larger tech companies have a more significant impact on its movements. SQQQ rebalances daily to maintain its target leverage ratio, which is critical due to the compounding effects of leveraged returns over time.
Frequently Asked Questions
Is SQQQ suitable for long-term investing?
No, SQQQ is designed for short-term trading due to its daily reset leverage, which can lead to significant performance deviations over longer periods.
How does SQQQ differ from short-selling the Nasdaq-100?
SQQQ provides inverse exposure without requiring a margin account or dealing with short-selling restrictions, but it carries additional risks due to leverage and daily resets.
What are the tax implications of trading SQQQ?
SQQQ is structured as a regulated investment company (RIC), meaning it passes through capital gains and dividends to shareholders, who are taxed accordingly.
Industry Overview
SQQQ is part of the leveraged and inverse ETF category, which caters to traders looking for amplified exposure to market movements. The Nasdaq-100 Index, which SQQQ tracks inversely, is heavily weighted toward technology giants like Apple, Microsoft, and Amazon. These ETFs are popular among tactical traders but are not recommended for long-term investors due to their complex risk profiles. SQQQ is often used during periods of market uncertainty or when investors anticipate a downturn in the tech sector.
Alternative Comparison
Compared to other inverse Nasdaq-100 ETFs like QID (-2x leverage) or PSQ (-1x leverage), SQQQ offers the highest degree of inverse exposure, making it more aggressive. However, its higher leverage also means greater risk and volatility. Unlike some competitors that may use a mix of short positions and derivatives, SQQQ relies heavily on swaps and futures for its leveraged inverse exposure.
Issuer Overview
ProShares is a leading issuer of leveraged and inverse ETFs, known for products like SQQQ, TQQQ, and other specialized funds. The firm focuses on providing innovative investment solutions for tactical traders and hedgers, with a strong emphasis on liquidity and transparency.
Conclusion
SQQQ is a high-risk, high-reward instrument best suited for experienced traders looking to capitalize on short-term declines in the Nasdaq-100. Its -3x leverage makes it one of the most aggressive inverse ETFs available, but investors must be aware of the risks, including volatility decay and the potential for rapid losses in rising markets.
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