SMDD vs. IQQQ

Last updated Jul 17, 2026

SMDD (ProShares UltraPro Short MidCap400) and IQQQ (ProShares Nasdaq-100 High Income ETF) are both exchange-traded funds - SMDD is a Leveraged Equities fund tracking the S&P MidCap 400 Index (-300%), while IQQQ is a Nasdaq-100 fund tracking the Nasdaq-100 Daily Covered Call Index. Both are passively managed. Over the past year, SMDD returned -45.70% vs 24.13% for IQQQ. At a correlation of -0.66, they often move in opposite directions. SMDD charges 0.95%/yr vs 0.55%/yr for IQQQ.

Performance

SMDD vs. IQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraPro Short MidCap400 (SMDD) and ProShares Nasdaq-100 High Income ETF (IQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMDD achieves a -36.11% return, which is significantly lower than IQQQ's 12.64% return.

SMDD

• 1D: -1.63%
• 1M: -0.00%
• 6M: -23.09%
• YTD: -36.11%
• 1Y: -45.70%
• 3Y*: -34.48%
• 5Y*: -31.60%
• 10Y*: -39.71%

IQQQ

• 1D: -1.64%
• 1M: -3.09%
• 6M: 11.42%
• YTD: 12.64%
• 1Y: 24.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SMDD vs. IQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMDD ProShares UltraPro Short MidCap400	-36.11%	-27.46%	-18.04%
IQQQ ProShares Nasdaq-100 High Income ETF	12.64%	17.11%	14.82%

Correlation

The correlation between SMDD and IQQQ is -0.64, 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	-0.64
Correlation (All Time) Calculated using the full available price history since Mar 20, 2024	-0.66

The correlation between SMDD and IQQQ has been stable across timeframes, ranging from -0.66 to -0.64 - a consistent structural relationship.

Return for Risk

SMDD vs. IQQQ — Risk / Return Rank

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

SMDD

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

IQQQ

IQQQ Risk / Return Rank: 48
IQQQ Sharpe Ratio Rank: 48
IQQQ Sortino Ratio Rank: 44
IQQQ Omega Ratio Rank: 44
IQQQ Calmar Ratio Rank: 53
IQQQ Martin Ratio Rank: 52

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.

SMDD vs. IQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro Short MidCap400 (SMDD) and ProShares Nasdaq-100 High Income ETF (IQQQ). 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.

	SMDD	IQQQ	Difference
Sharpe ratio: Return per unit of total volatility	-0.97	1.37	-2.34
Sortino ratio: Return per unit of downside risk	-1.39	1.85	-3.25
Omega ratio: Gain probability vs. loss probability	0.84	1.24	-0.40
Calmar ratio: Return relative to maximum drawdown	-0.92	2.18	-3.09
Martin ratio: Return relative to average drawdown	-1.59	7.13	-8.72

SMDD vs. IQQQ - Sharpe Ratio Comparison

The current SMDD Sharpe Ratio is -0.97, which is lower than the IQQQ Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of SMDD and IQQQ, 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

SMDD vs. IQQQ - Drawdown Comparison

The maximum SMDD drawdown since its inception was -99.99%, which is greater than IQQQ's maximum drawdown of -20.41%. Use the drawdown chart below to compare losses from any high point for SMDD and IQQQ.

Drawdown Indicators

	SMDD	IQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-99.99%	-20.41%	-79.58%
Max Drawdown (1Y) Largest decline over 1 year	-50.01%	-11.13%	-38.88%
Max Drawdown (3Y) Largest decline over 3 years	-82.62%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-88.24%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-99.45%	—	—
Current Drawdown Current decline from peak	-99.99%	-5.41%	-94.58%
Average Drawdown Average peak-to-trough decline	-92.99%	-3.63%	-89.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	28.79%	3.39%	+25.40%

Volatility

SMDD vs. IQQQ - Volatility Comparison

ProShares UltraPro Short MidCap400 (SMDD) has a higher volatility of 10.40% compared to ProShares Nasdaq-100 High Income ETF (IQQQ) at 7.12%. This indicates that SMDD's price experiences larger fluctuations and is considered to be riskier than IQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMDD	IQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.40%	7.12%	+3.28%
Volatility (6M) Calculated over the trailing 6-month period	35.28%	14.46%	+20.82%
Volatility (1Y) Calculated over the trailing 1-year period	47.19%	17.70%	+29.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	58.75%	19.16%	+39.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	63.21%	19.16%	+44.05%

SMDD vs. IQQQ - Expense Ratio Comparison

SMDD has a 0.95% expense ratio, which is higher than IQQQ's 0.55% expense ratio.

Dividends

SMDD vs. IQQQ - Dividend Comparison

SMDD's dividend yield for the trailing twelve months is around 5.85%, more than IQQQ's 5.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
IQQQ ProShares Nasdaq-100 High Income ETF	5.30%	10.34%	7.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SMDD ProShares UltraPro Short MidCap400	5.85%	4.96%	4.09%	3.86%	0.14%	0.00%	0.13%	1.51%	0.09%

Frequently Asked Questions

Can I hold both SMDD and IQQQ in my portfolio?

SMDD and IQQQ have a correlation of -0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMDD or IQQQ?

SMDD has higher volatility (10.40%) compared to IQQQ (7.12%). In terms of maximum drawdown, SMDD dropped -99.99% vs IQQQ's -20.41%.

Which ETF is better, SMDD or IQQQ?

On 1-year performance, IQQQ leads with 24.13% vs -45.70% for SMDD. On fees, IQQQ is cheaper at 0.55% per year. On volatility, IQQQ has been the lower-risk option at 7.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMDD or IQQQ?

Over the 1-year period, IQQQ has performed better with a 24.13% return vs -45.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMDD or IQQQ?

IQQQ is cheaper with a 0.55% expense ratio, compared with 0.95% for SMDD.

Which ETF pays a higher dividend yield, SMDD or IQQQ?

SMDD has the higher dividend yield at 5.85%, compared with 5.30% for IQQQ.

What is the main difference between SMDD and IQQQ?

SMDD is categorized as Leveraged Equities, while IQQQ is Nasdaq-100. SMDD tracks S&P MidCap 400 Index (-300%), while IQQQ tracks Nasdaq-100 Daily Covered Call Index. Their fees differ too: 0.95% for SMDD and 0.55% for IQQQ.

Which has better risk-adjusted returns?

IQQQ currently has the higher Sharpe Ratio (1.37 vs -0.97), 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.