SQQQ vs. ITA

Last updated Jun 9, 2026

SQQQ (ProShares UltraPro Short QQQ) and ITA (iShares U.S. Aerospace & Defense ETF) are both exchange-traded funds - SQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (-300%), while ITA is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index. Both are passively managed. Over the past 10 years, SQQQ returned -55.68%/yr vs 14.86%/yr for ITA. At a correlation of -0.59, they often move in opposite directions. SQQQ charges 0.95%/yr vs 0.38%/yr for ITA.

Performance

SQQQ vs. ITA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraPro Short QQQ (SQQQ) and iShares U.S. Aerospace & Defense ETF (ITA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SQQQ achieves a -39.28% return, which is significantly lower than ITA's 5.92% return. Over the past 10 years, SQQQ has underperformed ITA with an annualized return of -55.68%, while ITA has yielded a comparatively higher 14.86% annualized return.

SQQQ

• 1D: -4.47%
• 1M: -3.08%
• YTD: -39.28%
• 6M: -36.43%
• 1Y: -60.85%
• 3Y*: -54.68%
• 5Y*: -47.98%
• 10Y*: -55.68%

ITA

• 1D: -0.95%
• 1M: 1.69%
• YTD: 5.92%
• 6M: 11.28%
• 1Y: 25.56%
• 3Y*: 26.35%
• 5Y*: 16.26%
• 10Y*: 14.86%

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

SQQQ vs. ITA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SQQQ ProShares UltraPro Short QQQ	-39.28%	-53.05%	-49.79%	-73.61%	82.40%	-60.87%	-86.40%	-65.92%	-20.83%	-58.67%
ITA iShares U.S. Aerospace & Defense ETF	5.92%	48.64%	15.81%	14.33%	9.96%	9.39%	-13.57%	30.51%	-7.22%	35.24%

Correlation

The correlation between SQQQ and ITA is -0.43, 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	-0.43
Correlation (3Y) Calculated over the trailing 3-year period	-0.43
Correlation (5Y) Calculated over the trailing 5-year period	-0.51
Correlation (10Y) Calculated over the trailing 10-year period	-0.49
Correlation (All Time) Calculated using the full available price history since Feb 12, 2010	-0.59

The correlation between SQQQ and ITA shifts across timeframes, from -0.59 (all time) to -0.43 (1 year), reflecting how their relationship changes across market environments.

SQQQ vs. ITA - Sectors Allocation Comparison

Sectors	SQQQ	ITA
Financial Services	103.4%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	99.8%
Real Estate	-	-
Technology	-	0.1%
Utilities	-	-

Return for Risk

SQQQ vs. ITA — Risk / Return Rank

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

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: 1
SQQQ Martin Ratio Rank: 0

ITA

ITA Risk / Return Rank: 36
ITA Sharpe Ratio Rank: 38
ITA Sortino Ratio Rank: 38
ITA Omega Ratio Rank: 35
ITA Calmar Ratio Rank: 36
ITA Martin Ratio Rank: 32

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.

SQQQ vs. ITA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro Short QQQ (SQQQ) and iShares U.S. Aerospace & Defense ETF (ITA). 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.

	SQQQ	ITA	Difference
Sharpe ratio: Return per unit of total volatility	-1.22	1.22	-2.44
Sortino ratio: Return per unit of downside risk	-2.26	1.81	-4.07
Omega ratio: Gain probability vs. loss probability	0.76	1.21	-0.45
Calmar ratio: Return relative to maximum drawdown	-0.93	1.62	-2.55
Martin ratio: Return relative to average drawdown	-1.69	4.35	-6.04
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SQQQ vs. ITA - Sharpe Ratio Comparison

The current SQQQ Sharpe Ratio is -1.22, which is lower than the ITA Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of SQQQ and ITA, 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

	SQQQ	ITA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.22	1.22	-2.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.72	0.81	-1.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.84	0.64	-1.49
Sharpe Ratio (All Time) Calculated using the full available price history	-0.87	0.51	-1.38

Drawdowns

SQQQ vs. ITA - Drawdown Comparison

The maximum SQQQ drawdown since its inception was -100.00%, which is greater than ITA's maximum drawdown of -59.72%. Use the drawdown chart below to compare losses from any high point for SQQQ and ITA.

Drawdown Indicators

	SQQQ	ITA	Difference
Max Drawdown Largest peak-to-trough decline	-100.00%	-59.72%	-40.28%
Max Drawdown (1Y) Largest decline over 1 year	-65.71%	-15.82%	-49.89%
Max Drawdown (3Y) Largest decline over 3 years	-92.38%	-15.82%	-76.56%
Max Drawdown (5Y) Largest decline over 5 years	-97.23%	-18.72%	-78.51%
Max Drawdown (10Y) Largest decline over 10 years	-99.98%	-51.00%	-48.98%
Current Drawdown Current decline from peak	-100.00%	-9.25%	-90.75%
Average Drawdown Average peak-to-trough decline	-92.40%	-9.46%	-82.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	35.98%	5.89%	+30.09%

Volatility

SQQQ vs. ITA - Volatility Comparison

ProShares UltraPro Short QQQ (SQQQ) has a higher volatility of 19.65% compared to iShares U.S. Aerospace & Defense ETF (ITA) at 7.09%. This indicates that SQQQ's price experiences larger fluctuations and is considered to be riskier than ITA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SQQQ	ITA	Difference
Volatility (1M) Calculated over the trailing 1-month period	19.65%	7.09%	+12.56%
Volatility (6M) Calculated over the trailing 6-month period	39.23%	17.68%	+21.55%
Volatility (1Y) Calculated over the trailing 1-year period	50.16%	21.12%	+29.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	66.95%	20.07%	+46.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	66.30%	23.17%	+43.13%

SQQQ vs. ITA - Expense Ratio Comparison

SQQQ has a 0.95% expense ratio, which is higher than ITA's 0.38% expense ratio.

Dividends

SQQQ vs. ITA - Dividend Comparison

SQQQ's dividend yield for the trailing twelve months is around 11.25%, more than ITA's 0.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITA iShares U.S. Aerospace & Defense ETF	0.47%	0.55%	0.85%	0.93%	0.95%	0.82%	1.07%	1.54%	1.13%	0.91%	1.07%	1.04%
SQQQ ProShares UltraPro Short QQQ	11.25%	9.36%	10.23%	8.01%	0.28%	0.00%	2.15%	2.92%	1.47%	0.14%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SQQQ and ITA in my portfolio?

SQQQ and ITA have a correlation of -0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SQQQ or ITA?

SQQQ has higher volatility (19.65%) compared to ITA (7.09%). In terms of maximum drawdown, SQQQ dropped -100.00% vs ITA's -59.72%.

Which ETF is better, SQQQ or ITA?

On 10-year performance, ITA leads with 14.86% vs -55.68% for SQQQ. On fees, ITA is cheaper at 0.38% per year. On volatility, ITA has been the lower-risk option at 7.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SQQQ or ITA?

Over the 10-year period, ITA has performed better with a 14.86% return vs -55.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SQQQ or ITA?

ITA is cheaper with a 0.38% expense ratio, compared with 0.95% for SQQQ.

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

SQQQ has the higher dividend yield at 11.25%, compared with 0.47% for ITA.

What is the main difference between SQQQ and ITA?

SQQQ is categorized as Leveraged Equities, while ITA is Aerospace & Defense. SQQQ tracks NASDAQ-100 Index (-300%), while ITA tracks Dow Jones U.S. Select Aerospace & Defense Index. They also come from different issuers: ProShares and iShares. Their fees differ too: 0.95% for SQQQ and 0.38% for ITA.

Which has better risk-adjusted returns?

ITA currently has the higher Sharpe Ratio (1.22 vs -1.22), 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.