SQQQ vs. QQQ
Compare and contrast key facts about ProShares UltraPro Short QQQ (SQQQ) and Invesco QQQ (QQQ).
SQQQ and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SQQQ is a passively managed fund by ProShares that tracks the performance of the NASDAQ-100 Index (-300%). It was launched on Feb 9, 2010. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both SQQQ and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SQQQ or QQQ.
Key characteristics
| SQQQ | QQQ | |
|---|---|---|
| YTD Return | -19.92% | 8.09% |
| 1Y Return | -59.54% | 36.42% |
| 3Y Return (Ann) | -42.66% | 11.48% |
| 5Y Return (Ann) | -58.40% | 19.86% |
| 10Y Return (Ann) | -52.71% | 18.49% |
| Sharpe Ratio | -1.23 | 2.27 |
| Daily Std Dev | 48.57% | 16.21% |
| Max Drawdown | -100.00% | -82.98% |
| Current Drawdown | -100.00% | -0.97% |
Correlation
The correlation between SQQQ and QQQ is -1.00. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
SQQQ vs. QQQ - Performance Comparison
In the year-to-date period, SQQQ achieves a -19.92% return, which is significantly lower than QQQ's 8.09% return. Over the past 10 years, SQQQ has underperformed QQQ with an annualized return of -52.71%, while QQQ has yielded a comparatively higher 18.49% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SQQQ vs. QQQ - Expense Ratio Comparison
SQQQ has a 0.95% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
SQQQ vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro Short QQQ (SQQQ) and Invesco QQQ (QQQ). 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.
Dividends
SQQQ vs. QQQ - Dividend Comparison
SQQQ's dividend yield for the trailing twelve months is around 9.77%, more than QQQ's 0.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SQQQ ProShares UltraPro Short QQQ | 9.77% | 8.01% | 0.28% | 0.00% | 2.15% | 2.92% | 1.47% | 0.14% | 0.00% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.60% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
SQQQ vs. QQQ - Drawdown Comparison
The maximum SQQQ drawdown since its inception was -100.00%, which is greater than QQQ's maximum drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for SQQQ and QQQ. For additional features, visit the drawdowns tool.
Volatility
SQQQ vs. QQQ - Volatility Comparison
ProShares UltraPro Short QQQ (SQQQ) has a higher volatility of 16.41% compared to Invesco QQQ (QQQ) at 5.48%. This indicates that SQQQ's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.