PSQ vs. QQQD

Last updated Jun 4, 2026

PSQ (ProShares Short QQQ) and QQQD (Direxion Daily Magnificent 7 Bear 1X Shares) are both Inverse Equities funds - PSQ tracks the NASDAQ-100 Index (-100%) while QQQD tracks the Indxx Magnificent 7 Index (-100%). Both are passively managed. Over the past year, PSQ returned -26.29% vs -21.80% for QQQD. Their correlation of 0.88 suggests significant overlap in exposure. PSQ charges 0.95%/yr vs 0.57%/yr for QQQD.

Performance

PSQ vs. QQQD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Short QQQ (PSQ) and Direxion Daily Magnificent 7 Bear 1X Shares (QQQD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSQ achieves a -16.45% return, which is significantly lower than QQQD's -2.89% return.

PSQ

• 1D: 0.28%
• 1M: -9.35%
• YTD: -16.45%
• 6M: -14.96%
• 1Y: -26.29%
• 3Y*: -18.98%
• 5Y*: -14.55%
• 10Y*: -19.23%

QQQD

• 1D: 1.38%
• 1M: -1.88%
• YTD: -2.89%
• 6M: -2.43%
• 1Y: -21.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PSQ vs. QQQD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PSQ ProShares Short QQQ	-16.45%	-15.51%	-9.27%
QQQD Direxion Daily Magnificent 7 Bear 1X Shares	-2.89%	-20.32%	-27.69%

Correlation

The correlation between PSQ and QQQD is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (All Time) Calculated using the full available price history since Mar 8, 2024	0.88

The correlation between PSQ and QQQD has been stable across timeframes, ranging from 0.85 to 0.88 - a consistent structural relationship.

Return for Risk

PSQ vs. QQQD — Risk / Return Rank

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

PSQ

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

QQQD

QQQD Risk / Return Rank: 2
QQQD Sharpe Ratio Rank: 1
QQQD Sortino Ratio Rank: 1
QQQD Omega Ratio Rank: 2
QQQD Calmar Ratio Rank: 2
QQQD Martin Ratio Rank: 3

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.

PSQ vs. QQQD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Short QQQ (PSQ) and Direxion Daily Magnificent 7 Bear 1X Shares (QQQD). 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.

	PSQ	QQQD	Difference
Sharpe ratio: Return per unit of total volatility	-1.65	-1.08	-0.57
Sortino ratio: Return per unit of downside risk	-2.46	-1.55	-0.91
Omega ratio: Gain probability vs. loss probability	0.74	0.83	-0.09
Calmar ratio: Return relative to maximum drawdown	-0.98	-0.82	-0.16
Martin ratio: Return relative to average drawdown	-2.12	-1.23	-0.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSQ vs. QQQD - Sharpe Ratio Comparison

The current PSQ Sharpe Ratio is -1.65, which is lower than the QQQD Sharpe Ratio of -1.08. The chart below compares the historical Sharpe Ratios of PSQ and QQQD, 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

	PSQ	QQQD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.65	-1.08	-0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.65	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.87	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.76	-0.86	+0.09

Drawdowns

PSQ vs. QQQD - Drawdown Comparison

The maximum PSQ drawdown since its inception was -98.26%, which is greater than QQQD's maximum drawdown of -49.47%. Use the drawdown chart below to compare losses from any high point for PSQ and QQQD.

Drawdown Indicators

	PSQ	QQQD	Difference
Max Drawdown Largest peak-to-trough decline	-98.26%	-49.47%	-48.79%
Max Drawdown (1Y) Largest decline over 1 year	-26.93%	-26.65%	-0.28%
Max Drawdown (3Y) Largest decline over 3 years	-49.65%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-60.91%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-88.98%	—	—
Current Drawdown Current decline from peak	-98.25%	-47.50%	-50.75%
Average Drawdown Average peak-to-trough decline	-73.97%	-30.34%	-43.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.41%	17.72%	-5.31%

Volatility

PSQ vs. QQQD - Volatility Comparison

The current volatility for ProShares Short QQQ (PSQ) is 4.50%, while Direxion Daily Magnificent 7 Bear 1X Shares (QQQD) has a volatility of 4.76%. This indicates that PSQ experiences smaller price fluctuations and is considered to be less risky than QQQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSQ	QQQD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.50%	4.76%	-0.26%
Volatility (6M) Calculated over the trailing 6-month period	12.14%	14.43%	-2.29%
Volatility (1Y) Calculated over the trailing 1-year period	16.01%	20.21%	-4.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.43%	26.77%	-4.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.25%	26.77%	-4.52%

PSQ vs. QQQD - Expense Ratio Comparison

PSQ has a 0.95% expense ratio, which is higher than QQQD's 0.57% expense ratio.

Dividends

PSQ vs. QQQD - Dividend Comparison

PSQ's dividend yield for the trailing twelve months is around 5.24%, more than QQQD's 4.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSQ ProShares Short QQQ	5.24%	4.97%	7.15%	6.01%	0.35%	0.00%	0.31%	1.75%	0.95%	0.02%
QQQD Direxion Daily Magnificent 7 Bear 1X Shares	4.07%	4.33%	5.17%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSQ and QQQD in my portfolio?

PSQ and QQQD have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSQ or QQQD?

QQQD has higher volatility (4.76%) compared to PSQ (4.50%). In terms of maximum drawdown, PSQ dropped -98.26% vs QQQD's -49.47%.

Which ETF is better, PSQ or QQQD?

On 1-year performance, QQQD leads with -21.80% vs -26.29% for PSQ. On fees, QQQD is cheaper at 0.57% per year. On volatility, PSQ has been the lower-risk option at 4.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSQ or QQQD?

Over the 1-year period, QQQD has performed better with a -21.80% return vs -26.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSQ or QQQD?

QQQD is cheaper with a 0.57% expense ratio, compared with 0.95% for PSQ.

Which ETF pays a higher dividend yield, PSQ or QQQD?

PSQ has the higher dividend yield at 5.24%, compared with 4.07% for QQQD.

What is the main difference between PSQ and QQQD?

PSQ tracks NASDAQ-100 Index (-100%), while QQQD tracks Indxx Magnificent 7 Index (-100%). They also come from different issuers: ProShares and Direxion. Their fees differ too: 0.95% for PSQ and 0.57% for QQQD.

Which has better risk-adjusted returns?

QQQD currently has the higher Sharpe Ratio (-1.08 vs -1.65), 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.