PSQ vs. SPY

Last updated Jul 7, 2026

PSQ (ProShares Short QQQ) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - PSQ is a Inverse Equities fund tracking the NASDAQ-100 Index (-100%), while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, PSQ returned -18.95%/yr vs 15.29%/yr for SPY. At a correlation of -0.89, they often move in opposite directions. PSQ charges 0.95%/yr vs 0.09%/yr for SPY.

Performance

PSQ vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Short QQQ (PSQ) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSQ achieves a -14.34% return, which is significantly lower than SPY's 10.76% return. Over the past 10 years, PSQ has underperformed SPY with an annualized return of -18.95%, while SPY has yielded a comparatively higher 15.29% annualized return.

PSQ

• 1D: -1.43%
• 1M: -2.66%
• 6M: -13.88%
• YTD: -14.34%
• 1Y: -20.62%
• 3Y*: -17.57%
• 5Y*: -12.82%
• 10Y*: -18.95%

SPY

• 1D: 0.87%
• 1M: 2.12%
• 6M: 9.82%
• YTD: 10.76%
• 1Y: 21.47%
• 3Y*: 21.15%
• 5Y*: 13.09%
• 10Y*: 15.29%

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

PSQ vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSQ ProShares Short QQQ	-14.34%	-15.51%	-15.68%	-32.01%	36.40%	-24.84%	-41.23%	-27.49%	-2.34%	-24.77%
SPY State Street SPDR S&P 500 ETF	10.76%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between PSQ and SPY is -0.93, 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	-0.93
Correlation (3Y) Calculated over the trailing 3-year period	-0.93
Correlation (5Y) Calculated over the trailing 5-year period	-0.94
Correlation (10Y) Calculated over the trailing 10-year period	-0.91
Correlation (All Time) Calculated using the full available price history since Jun 21, 2006	-0.89

The correlation between PSQ and SPY has been stable across timeframes, ranging from -0.94 to -0.89 - a consistent structural relationship.

PSQ vs. SPY - Sectors Allocation Comparison

Sectors	PSQ	SPY
Financial Services	83.3%	11.1%
Basic Materials	-	1.7%
Communication Services	-	10.6%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Healthcare	-	8.3%
Industrials	-	7.8%
Real Estate	-	1.8%
Technology	-	39.0%
Utilities	-	2.1%

Return for Risk

PSQ vs. SPY — Risk / Return Rank

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

PSQ

PSQ Risk / Return Rank: 1
PSQ Sharpe Ratio Rank: 1
PSQ Sortino Ratio Rank: 1
PSQ Omega Ratio Rank: 1
PSQ Calmar Ratio Rank: 2
PSQ Martin Ratio Rank: 0

SPY

SPY Risk / Return Rank: 64
SPY Sharpe Ratio Rank: 64
SPY Sortino Ratio Rank: 61
SPY Omega Ratio Rank: 63
SPY Calmar Ratio Rank: 59
SPY Martin Ratio Rank: 71

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Short QQQ (PSQ) and State Street SPDR S&P 500 ETF (SPY). 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.

	PSQ	SPY	Difference
Sharpe ratio: Return per unit of total volatility	-1.13	1.72	-2.85
Sortino ratio: Return per unit of downside risk	-1.64	2.37	-4.01
Omega ratio: Gain probability vs. loss probability	0.82	1.31	-0.49
Calmar ratio: Return relative to maximum drawdown	-0.83	2.43	-3.26
Martin ratio: Return relative to average drawdown	-1.80	10.61	-12.41

PSQ vs. SPY - Sharpe Ratio Comparison

The current PSQ Sharpe Ratio is -1.13, which is lower than the SPY Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of PSQ and SPY, 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

PSQ vs. SPY - Drawdown Comparison

The maximum PSQ drawdown since its inception was -98.26%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for PSQ and SPY.

Drawdown Indicators

	PSQ	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-98.26%	-55.19%	-43.07%
Max Drawdown (1Y) Largest decline over 1 year	-24.83%	-8.88%	-15.95%
Max Drawdown (3Y) Largest decline over 3 years	-49.65%	-18.76%	-30.89%
Max Drawdown (5Y) Largest decline over 5 years	-60.91%	-24.50%	-36.41%
Max Drawdown (10Y) Largest decline over 10 years	-88.10%	-33.72%	-54.38%
Current Drawdown Current decline from peak	-98.21%	-0.84%	-97.37%
Average Drawdown Average peak-to-trough decline	-74.06%	-9.03%	-65.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.47%	2.03%	+9.44%

Volatility

PSQ vs. SPY - Volatility Comparison

ProShares Short QQQ (PSQ) has a higher volatility of 9.78% compared to State Street SPDR S&P 500 ETF (SPY) at 5.19%. This indicates that PSQ's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSQ	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.78%	5.19%	+4.59%
Volatility (6M) Calculated over the trailing 6-month period	15.03%	9.96%	+5.07%
Volatility (1Y) Calculated over the trailing 1-year period	18.35%	12.57%	+5.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.78%	17.17%	+5.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.38%	17.93%	+4.45%

PSQ vs. SPY - Expense Ratio Comparison

PSQ has a 0.95% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

PSQ vs. SPY - Dividend Comparison

PSQ's dividend yield for the trailing twelve months is around 4.47%, more than SPY's 1.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSQ ProShares Short QQQ	4.47%	4.97%	7.15%	6.01%	0.35%	0.00%	0.31%	1.75%	0.95%	0.02%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both PSQ and SPY in my portfolio?

PSQ and SPY have a correlation of -0.93, 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 SPY?

PSQ has higher volatility (9.78%) compared to SPY (5.19%). In terms of maximum drawdown, PSQ dropped -98.26% vs SPY's -55.19%.

Which ETF is better, PSQ or SPY?

On 10-year performance, SPY leads with 15.29% vs -18.95% for PSQ. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 5.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSQ or SPY?

Over the 10-year period, SPY has performed better with a 15.29% return vs -18.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSQ or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.95% for PSQ.

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

PSQ has the higher dividend yield at 4.47%, compared with 1.00% for SPY.

What is the main difference between PSQ and SPY?

PSQ is categorized as Inverse Equities, while SPY is S&P 500. PSQ tracks NASDAQ-100 Index (-100%), while SPY tracks S&P 500 Index. They also come from different issuers: ProShares and State Street. Their fees differ too: 0.95% for PSQ and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.72 vs -1.13), 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.