SDS vs. ^NDX

Last updated Jun 4, 2026

SDS (ProShares UltraShort S&P500) is Leveraged Equities fund tracking the S&P 500 Index (-200%), while ^NDX (NASDAQ 100 Index) is an index. Over the past 10 years, SDS returned -27.72%/yr vs 21.09%/yr for ^NDX. At a correlation of -0.89, they often move in opposite directions.

Performance

SDS vs. ^NDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort S&P500 (SDS) and NASDAQ 100 Index (^NDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SDS achieves a -17.06% return, which is significantly lower than ^NDX's 21.07% return. Over the past 10 years, SDS has underperformed ^NDX with an annualized return of -27.72%, while ^NDX has yielded a comparatively higher 21.09% annualized return.

SDS

• 1D: 1.35%
• 1M: -8.86%
• YTD: -17.06%
• 6M: -16.53%
• 1Y: -34.59%
• 3Y*: -28.79%
• 5Y*: -21.98%
• 10Y*: -27.72%

^NDX

• 1D: -0.29%
• 1M: 10.56%
• YTD: 21.07%
• 6M: 19.39%
• 1Y: 41.12%
• 3Y*: 28.09%
• 5Y*: 17.29%
• 10Y*: 21.09%

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

SDS vs. ^NDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDS ProShares UltraShort S&P500	-17.06%	-26.79%	-29.45%	-31.53%	30.69%	-43.02%	-49.91%	-41.17%	6.04%	-32.02%
^NDX NASDAQ 100 Index	21.07%	20.17%	24.88%	53.81%	-32.97%	26.63%	47.58%	37.96%	-1.04%	31.52%

Correlation

The correlation between SDS and ^NDX is -0.94, 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	-0.94
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 Jul 14, 2006	-0.89

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

Return for Risk

SDS vs. ^NDX — Risk / Return Rank

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

SDS

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

^NDX

^NDX Risk / Return Rank: 81
^NDX Sharpe Ratio Rank: 83
^NDX Sortino Ratio Rank: 82
^NDX Omega Ratio Rank: 81
^NDX Calmar Ratio Rank: 81
^NDX Martin Ratio Rank: 80

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.

SDS vs. ^NDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort S&P500 (SDS) and NASDAQ 100 Index (^NDX). 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.

	SDS	^NDX	Difference
Sharpe ratio Return per unit of total volatility	-1.47	2.57	-4.04
Sortino ratio Return per unit of downside risk	-2.28	3.37	-5.65
Omega ratio Gain probability vs. loss probability	0.75	1.44	-0.68
Calmar ratio Return relative to maximum drawdown	-0.96	3.41	-4.37
Martin ratio Return relative to average drawdown	-1.69	13.03	-14.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SDS vs. ^NDX - Sharpe Ratio Comparison

The current SDS Sharpe Ratio is -1.47, which is lower than the ^NDX Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of SDS and ^NDX, 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

	SDS	^NDX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.47	2.57	-4.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.66	0.77	-1.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.78	0.94	-1.72
Sharpe Ratio (All Time) Calculated using the full available price history	-0.66	0.57	-1.23

Drawdowns

SDS vs. ^NDX - Drawdown Comparison

The maximum SDS drawdown since its inception was -99.85%, which is greater than ^NDX's maximum drawdown of -82.90%. Use the drawdown chart below to compare losses from any high point for SDS and ^NDX.

Drawdown Indicators

	SDS	^NDX	Difference
Max Drawdown Largest peak-to-trough decline	-99.85%	-82.90%	-16.95%
Max Drawdown (1Y) Largest decline over 1 year	-36.20%	-12.12%	-24.08%
Max Drawdown (3Y) Largest decline over 3 years	-68.14%	-22.93%	-45.21%
Max Drawdown (5Y) Largest decline over 5 years	-75.54%	-35.56%	-39.98%
Max Drawdown (10Y) Largest decline over 10 years	-96.48%	-35.56%	-60.92%
Current Drawdown Current decline from peak	-99.85%	-0.29%	-99.56%
Average Drawdown Average peak-to-trough decline	-82.73%	-24.62%	-58.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.51%	3.17%	+17.34%

Volatility

SDS vs. ^NDX - Volatility Comparison

ProShares UltraShort S&P500 (SDS) has a higher volatility of 5.59% compared to NASDAQ 100 Index (^NDX) at 4.52%. This indicates that SDS's price experiences larger fluctuations and is considered to be riskier than ^NDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SDS	^NDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	4.52%	+1.07%
Volatility (6M) Calculated over the trailing 6-month period	17.81%	12.18%	+5.63%
Volatility (1Y) Calculated over the trailing 1-year period	23.58%	16.08%	+7.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.64%	22.60%	+11.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.82%	22.53%	+13.29%

Frequently Asked Questions

Can I hold both SDS and ^NDX in my portfolio?

SDS and ^NDX have a correlation of -0.94, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDS or ^NDX?

SDS has higher volatility (5.59%) compared to ^NDX (4.52%). In terms of maximum drawdown, SDS dropped -99.85% vs ^NDX's -82.90%.

Which has better risk-adjusted returns?

^NDX currently has the higher Sharpe Ratio (2.57 vs -1.47), 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.