SDS vs. SQQQ

Last updated Aug 2, 2026

SDS (ProShares UltraShort S&P500) and SQQQ (ProShares UltraPro Short QQQ) are both Leveraged Equities funds from ProShares - SDS tracks the S&P 500 Index (-200%) while SQQQ tracks the NASDAQ-100 Index (-300%). Both are passively managed. Over the past 10 years, SDS returned -27.05%/yr vs -54.48%/yr for SQQQ. Their correlation of 0.90 means they have usually moved in the same direction. SDS charges 0.91%/yr vs 0.95%/yr for SQQQ.

Performance

SDS vs. SQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort S&P500 (SDS) 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, SDS achieves a -15.25% return, which is significantly higher than SQQQ's -34.61% return. Over the past 10 years, SDS has outperformed SQQQ with an annualized return of -27.05%, while SQQQ has yielded a comparatively lower -54.48% annualized return.

SDS

• 1D: -1.30%
• 1M: -0.07%
• 6M: -13.26%
• YTD: -15.25%
• 1Y: -28.08%
• 3Y*: -25.42%
• 5Y*: -20.30%
• 10Y*: -27.05%
• ALL TIME*: -24.93%

SQQQ

• 1D: -1.99%
• 1M: 9.46%
• 6M: -32.40%
• YTD: -34.61%
• 1Y: -52.32%
• 3Y*: -49.83%
• 5Y*: -44.46%
• 10Y*: -54.48%
• ALL TIME*: -52.68%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SDS ProShares UltraShort S&P500	$155.74M	$150.04M	$195.27M
SQQQ ProShares UltraPro Short QQQ	$2.40B	$2.29B	$2.66B

SDS vs. SQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDS ProShares UltraShort S&P500	-15.25%	-26.79%	-29.45%	-31.53%	30.69%	-43.02%	-49.91%	-41.17%	6.04%	-32.02%
SQQQ ProShares UltraPro Short QQQ	-34.61%	-53.05%	-49.79%	-73.61%	82.40%	-60.87%	-86.40%	-65.92%	-20.83%	-58.67%

Correlation

The correlation between SDS and SQQQ is 0.93, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.93
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.94
Correlation (10Y) Provides a long-term view across more market conditions.	0.91
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010	0.90

The correlation between SDS and SQQQ has been stable across timeframes, ranging from 0.90 to 0.94 - a consistent structural relationship.

SDS vs. SQQQ - Sectors Allocation Comparison

Sectors	SDS	SQQQ
Financial Services	82.5%	89.7%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

SDS vs. SQQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SDS

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

SQQQ

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

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SDS vs. SQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort S&P500 (SDS) 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.

	SDS	SQQQ	Difference
Sharpe ratio: Return per unit of total volatility	-1.01	-0.86	-0.15
Sortino ratio: Return per unit of downside risk	-1.45	-1.25	-0.20
Omega ratio: Gain probability vs. loss probability	0.84	0.86	-0.02
Calmar ratio: Return relative to maximum drawdown	-0.84	-0.81	-0.03
Martin ratio: Return relative to average drawdown	-1.42	-1.41	-0.01

SDS vs. SQQQ - Sharpe Ratio Comparison

The current SDS Sharpe Ratio is -1.01, which is comparable to the SQQQ Sharpe Ratio of -0.86. The chart below compares the historical Sharpe Ratios of SDS 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

SDS vs. SQQQ - Drawdown Comparison

The maximum SDS drawdown since its inception was -99.85%, roughly equal to the maximum SQQQ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for SDS and SQQQ.

Drawdown Indicators

	SDS	SQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-99.85%	-100.00%	+0.15%
Max Drawdown (1Y) Largest decline over 1 year	-30.56%	-61.03%	+30.47%
Max Drawdown (3Y) Largest decline over 3 years	-68.14%	-92.51%	+24.37%
Max Drawdown (5Y) Largest decline over 5 years	-75.54%	-97.27%	+21.73%
Max Drawdown (10Y) Largest decline over 10 years	-96.08%	-99.97%	+3.89%
Current Drawdown Current decline from peak	-99.84%	-100.00%	+0.16%
Average Drawdown Average peak-to-trough decline	-82.85%	-92.78%	+9.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.14%	35.08%	-16.94%

Volatility

SDS vs. SQQQ - Volatility Comparison

The current volatility for ProShares UltraShort S&P500 (SDS) is 7.16%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 20.82%. This indicates that SDS 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

	SDS	SQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.16%	20.82%	-13.66%
Volatility (6M) Calculated over the trailing 6-month period	20.17%	48.09%	-27.92%
Volatility (1Y) Calculated over the trailing 1-year period	25.61%	57.98%	-32.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.87%	68.18%	-34.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.84%	66.74%	-30.90%

SDS vs. SQQQ - Expense Ratio Comparison

SDS has a 0.91% expense ratio, which is lower than SQQQ's 0.95% expense ratio.

Dividends

SDS vs. SQQQ - Dividend Comparison

SDS's dividend yield for the trailing twelve months is around 5.30%, less than SQQQ's 9.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDS ProShares UltraShort S&P500	5.30%	5.88%	7.89%	5.77%	0.35%	0.00%	0.92%	1.84%	1.28%	0.09%
SQQQ ProShares UltraPro Short QQQ	9.14%	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 SDS and SQQQ in my portfolio?

With a correlation of 0.93, SDS and SQQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SDS or SQQQ?

SQQQ has higher volatility (20.82%) compared to SDS (7.16%). In terms of maximum drawdown, SDS dropped -99.85% vs SQQQ's -100.00%.

Which ETF is better, SDS or SQQQ?

On 10-year performance, SDS leads with -27.05% vs -54.48% for SQQQ. On fees, SDS is cheaper at 0.91% per year. On volatility, SDS has been the lower-risk option at 7.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDS or SQQQ?

Over the 10-year period, SDS has performed better with a -27.05% return vs -54.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDS or SQQQ?

SDS is cheaper with a 0.91% expense ratio, compared with 0.95% for SQQQ.

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

SQQQ has the higher dividend yield at 9.14%, compared with 5.30% for SDS.

What is the main difference between SDS and SQQQ?

SDS tracks S&P 500 Index (-200%), while SQQQ tracks NASDAQ-100 Index (-300%). Their fees differ too: 0.91% for SDS and 0.95% for SQQQ.

Which has better risk-adjusted returns?

SQQQ currently has the higher Sharpe Ratio (-0.86 vs -1.01), 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.