ITWO vs. SQQQ

Last updated Jun 25, 2026

ITWO (Proshares Russell 2000 High Income ETF) and SQQQ (ProShares UltraPro Short QQQ) are both exchange-traded funds - ITWO is a Derivative Income fund tracking the Cboe Russell 2000 Daily Covered Call Index, while SQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (-300%). Both are passively managed. Over the past year, ITWO returned 39.64% vs -59.36% for SQQQ. At a correlation of -0.70, they often move in opposite directions. ITWO charges 0.55%/yr vs 0.95%/yr for SQQQ.

Performance

ITWO vs. SQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Proshares Russell 2000 High Income ETF (ITWO) and ProShares UltraPro Short QQQ (SQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ITWO achieves a 21.97% return, which is significantly higher than SQQQ's -40.47% return.

ITWO

• 1D: 0.37%
• 1M: 4.85%
• YTD: 21.97%
• 6M: 19.09%
• 1Y: 39.64%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SQQQ

• 1D: -0.27%
• 1M: -2.53%
• YTD: -40.47%
• 6M: -37.47%
• 1Y: -59.36%
• 3Y*: -53.90%
• 5Y*: -46.94%
• 10Y*: -56.25%

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

ITWO vs. SQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ITWO Proshares Russell 2000 High Income ETF	21.97%	14.25%	3.10%
SQQQ ProShares UltraPro Short QQQ	-40.47%	-53.05%	-27.58%

Correlation

The correlation between ITWO and SQQQ is -0.68, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.68
Correlation (All Time) Calculated using the full available price history since Sep 5, 2024	-0.70

The correlation between ITWO and SQQQ has been stable across timeframes, ranging from -0.70 to -0.68 - a consistent structural relationship.

Return for Risk

ITWO vs. SQQQ — Risk / Return Rank

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

ITWO

ITWO Risk / Return Rank: 74
ITWO Sharpe Ratio Rank: 74
ITWO Sortino Ratio Rank: 70
ITWO Omega Ratio Rank: 62
ITWO Calmar Ratio Rank: 84
ITWO Martin Ratio Rank: 79

SQQQ

SQQQ Risk / Return Rank: 1
SQQQ Sharpe Ratio Rank: 1
SQQQ Sortino Ratio Rank: 1
SQQQ Omega Ratio Rank: 1
SQQQ Calmar Ratio Rank: 1
SQQQ Martin Ratio Rank: 0

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.

ITWO vs. SQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Proshares Russell 2000 High Income ETF (ITWO) and ProShares UltraPro Short QQQ (SQQQ). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ITWO	SQQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.08	-1.11	+3.19
Sortino ratio: Return per unit of downside risk	2.80	-1.98	+4.77
Omega ratio: Gain probability vs. loss probability	1.33	0.79	+0.55
Calmar ratio: Return relative to maximum drawdown	4.07	-0.94	+5.01
Martin ratio: Return relative to average drawdown	13.64	-1.77	+15.41

ITWO vs. SQQQ - Sharpe Ratio Comparison

The current ITWO Sharpe Ratio is 2.08, which is higher than the SQQQ Sharpe Ratio of -1.11. The chart below compares the historical Sharpe Ratios of ITWO and SQQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ITWO vs. SQQQ - Drawdown Comparison

The maximum ITWO drawdown since its inception was -24.77%, smaller than the maximum SQQQ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for ITWO and SQQQ.

Drawdown Indicators

	ITWO	SQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-24.77%	-100.00%	+75.23%
Max Drawdown (1Y) Largest decline over 1 year	-9.79%	-63.25%	+53.46%
Max Drawdown (3Y) Largest decline over 3 years	—	-92.51%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-97.27%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-99.98%	—
Current Drawdown Current decline from peak	-0.45%	-100.00%	+99.55%
Average Drawdown Average peak-to-trough decline	-5.02%	-92.73%	+87.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.91%	33.97%	-31.06%

Volatility

ITWO vs. SQQQ - Volatility Comparison

The current volatility for Proshares Russell 2000 High Income ETF (ITWO) is 6.63%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 26.67%. This indicates that ITWO experiences smaller price fluctuations and is considered to be less risky than SQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITWO	SQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.63%	26.67%	-20.04%
Volatility (6M) Calculated over the trailing 6-month period	14.07%	43.18%	-29.11%
Volatility (1Y) Calculated over the trailing 1-year period	19.20%	53.58%	-34.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.62%	67.53%	-46.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.62%	66.46%	-45.84%

ITWO vs. SQQQ - Expense Ratio Comparison

ITWO has a 0.55% expense ratio, which is lower than SQQQ's 0.95% expense ratio.

Dividends

ITWO vs. SQQQ - Dividend Comparison

ITWO's dividend yield for the trailing twelve months is around 7.30%, less than SQQQ's 11.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
ITWO Proshares Russell 2000 High Income ETF	7.30%	12.12%	4.11%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SQQQ ProShares UltraPro Short QQQ	8.30%	9.36%	10.23%	8.01%	0.28%	0.00%	2.15%	2.92%	1.47%	0.14%

Frequently Asked Questions

Can I hold both ITWO and SQQQ in my portfolio?

ITWO and SQQQ have a correlation of -0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ITWO or SQQQ?

SQQQ has higher volatility (26.67%) compared to ITWO (6.63%). In terms of maximum drawdown, ITWO dropped -24.77% vs SQQQ's -100.00%.

Which ETF is better, ITWO or SQQQ?

On 1-year performance, ITWO leads with 39.64% vs -59.36% for SQQQ. On fees, ITWO is cheaper at 0.55% per year. On volatility, ITWO has been the lower-risk option at 6.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ITWO or SQQQ?

Over the 1-year period, ITWO has performed better with a 39.64% return vs -59.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ITWO or SQQQ?

ITWO is cheaper with a 0.55% expense ratio, compared with 0.95% for SQQQ.

Which ETF pays a higher dividend yield, ITWO or SQQQ?

SQQQ has the higher dividend yield at 11.47%, compared with 7.30% for ITWO.

What is the main difference between ITWO and SQQQ?

ITWO is categorized as Derivative Income, while SQQQ is Leveraged Equities. ITWO tracks Cboe Russell 2000 Daily Covered Call Index, while SQQQ tracks NASDAQ-100 Index (-300%). Their fees differ too: 0.55% for ITWO and 0.95% for SQQQ.

Which has better risk-adjusted returns?

ITWO currently has the higher Sharpe Ratio (2.08 vs -1.11), 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.