SEF vs. SQQQ

Last updated Jun 4, 2026

SEF (ProShares Short Financials) and SQQQ (ProShares UltraPro Short QQQ) are both exchange-traded funds - SEF is a Inverse Equities fund tracking the Dow Jones U.S. Financials Index (-100%), while SQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (-300%). Both are passively managed. Over the past 10 years, SEF returned -11.50%/yr vs -56.01%/yr for SQQQ. A 0.64 correlation means they provide meaningful diversification when combined. Both charge a 0.95% expense ratio.

Performance

SEF vs. SQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Short Financials (SEF) 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, SEF achieves a 8.89% return, which is significantly higher than SQQQ's -45.27% return. Over the past 10 years, SEF has outperformed SQQQ with an annualized return of -11.50%, while SQQQ has yielded a comparatively lower -56.01% annualized return.

SEF

• 1D: 1.10%
• 1M: 1.81%
• YTD: 8.89%
• 6M: 6.43%
• 1Y: 3.73%
• 3Y*: -10.34%
• 5Y*: -5.21%
• 10Y*: -11.50%

SQQQ

• 1D: 0.76%
• 1M: -26.37%
• YTD: -45.27%
• 6M: -42.79%
• 1Y: -65.16%
• 3Y*: -56.19%
• 5Y*: -49.17%
• 10Y*: -56.01%

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

SEF vs. SQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SEF ProShares Short Financials	8.89%	-9.82%	-17.81%	-8.81%	11.85%	-27.02%	-16.93%	-23.51%	10.34%	-17.12%
SQQQ ProShares UltraPro Short QQQ	-45.27%	-53.05%	-49.79%	-73.61%	82.40%	-60.87%	-86.40%	-65.92%	-20.83%	-58.67%

Correlation

The correlation between SEF and SQQQ is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Feb 12, 2010	0.64

The correlation between SEF and SQQQ shifts across timeframes, from 0.44 (1 year) to 0.64 (all time), reflecting how their relationship changes across market environments.

SEF vs. SQQQ - Sectors Allocation Comparison

Sectors	SEF	SQQQ
Financial Services	65.0%	97.1%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

SEF vs. SQQQ — Risk / Return Rank

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

SEF

SEF Risk / Return Rank: 12
SEF Sharpe Ratio Rank: 12
SEF Sortino Ratio Rank: 12
SEF Omega Ratio Rank: 12
SEF Calmar Ratio Rank: 13
SEF Martin Ratio Rank: 12

SQQQ

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

SEF vs. SQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Short Financials (SEF) 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.

	SEF	SQQQ	Difference
Sharpe ratio Return per unit of total volatility	0.26	-1.37	+1.63
Sortino ratio Return per unit of downside risk	0.50	-2.63	+3.13
Omega ratio Gain probability vs. loss probability	1.06	0.72	+0.33
Calmar ratio Return relative to maximum drawdown	0.39	-0.99	+1.38
Martin ratio Return relative to average drawdown	0.73	-1.82	+2.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SEF vs. SQQQ - Sharpe Ratio Comparison

The current SEF Sharpe Ratio is 0.26, which is higher than the SQQQ Sharpe Ratio of -1.37. The chart below compares the historical Sharpe Ratios of SEF 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.

Sharpe Ratios by Period

	SEF	SQQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.26	-1.37	+1.63
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.29	-0.74	+0.45
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.56	-0.85	+0.29
Sharpe Ratio (All Time) Calculated using the full available price history	-0.49	-0.88	+0.39

Drawdowns

SEF vs. SQQQ - Drawdown Comparison

The maximum SEF drawdown since its inception was -96.51%, roughly equal to the maximum SQQQ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for SEF and SQQQ.

Drawdown Indicators

	SEF	SQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-96.51%	-100.00%	+3.49%
Max Drawdown (1Y) Largest decline over 1 year	-9.72%	-65.95%	+56.23%
Max Drawdown (3Y) Largest decline over 3 years	-39.40%	-92.38%	+52.98%
Max Drawdown (5Y) Largest decline over 5 years	-41.62%	-97.23%	+55.61%
Max Drawdown (10Y) Largest decline over 10 years	-75.66%	-99.98%	+24.32%
Current Drawdown Current decline from peak	-96.09%	-100.00%	+3.91%
Average Drawdown Average peak-to-trough decline	-82.72%	-92.40%	+9.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.14%	35.73%	-30.59%

Volatility

SEF vs. SQQQ - Volatility Comparison

The current volatility for ProShares Short Financials (SEF) is 3.01%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 13.75%. This indicates that SEF 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

	SEF	SQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.01%	13.75%	-10.74%
Volatility (6M) Calculated over the trailing 6-month period	10.85%	36.45%	-25.60%
Volatility (1Y) Calculated over the trailing 1-year period	14.34%	47.79%	-33.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.96%	66.64%	-48.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.52%	66.11%	-45.59%

SEF vs. SQQQ - Expense Ratio Comparison

Both SEF and SQQQ have an expense ratio of 0.95%.

Dividends

SEF vs. SQQQ - Dividend Comparison

SEF's dividend yield for the trailing twelve months is around 3.35%, less than SQQQ's 12.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SEF ProShares Short Financials	3.35%	4.33%	5.72%	4.43%	0.39%	0.00%	0.12%	1.25%	0.41%	0.00%
SQQQ ProShares UltraPro Short QQQ	12.48%	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 SEF and SQQQ in my portfolio?

SEF and SQQQ have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SEF or SQQQ?

SQQQ has higher volatility (13.75%) compared to SEF (3.01%). In terms of maximum drawdown, SEF dropped -96.51% vs SQQQ's -100.00%.

Which ETF is better, SEF or SQQQ?

On 10-year performance, SEF leads with -11.50% vs -56.01% for SQQQ. Both ETFs have the same 0.95% expense ratio. On volatility, SEF has been the lower-risk option at 3.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SEF or SQQQ?

Over the 10-year period, SEF has performed better with a -11.50% return vs -56.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SEF or SQQQ?

SEF and SQQQ have the same expense ratio: 0.95% per year.

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

SQQQ has the higher dividend yield at 12.48%, compared with 3.35% for SEF.

What is the main difference between SEF and SQQQ?

SEF is categorized as Inverse Equities, while SQQQ is Leveraged Equities. SEF tracks Dow Jones U.S. Financials Index (-100%), while SQQQ tracks NASDAQ-100 Index (-300%).

Which has better risk-adjusted returns?

SEF currently has the higher Sharpe Ratio (0.26 vs -1.37), 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.