SQQQ vs. SDS

Last updated Jun 4, 2026

SQQQ (ProShares UltraPro Short QQQ) and SDS (ProShares UltraShort S&P500) are both Leveraged Equities funds from ProShares - SQQQ tracks the NASDAQ-100 Index (-300%) while SDS tracks the S&P 500 Index (-200%). Both are passively managed. Over the past 10 years, SQQQ returned -56.01%/yr vs -27.72%/yr for SDS. Their correlation of 0.90 suggests significant overlap in exposure. SQQQ charges 0.95%/yr vs 0.91%/yr for SDS.

Performance

SQQQ vs. SDS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraPro Short QQQ (SQQQ) and ProShares UltraShort S&P500 (SDS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SQQQ achieves a -45.27% return, which is significantly lower than SDS's -17.06% return. Over the past 10 years, SQQQ has underperformed SDS with an annualized return of -56.01%, while SDS has yielded a comparatively higher -27.72% annualized return.

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%

SDS

• 1D: 1.35%
• 1M: -8.86%
• YTD: -17.06%
• 6M: -16.53%
• 1Y: -34.59%
• 3Y*: -28.79%
• 5Y*: -21.98%
• 10Y*: -27.72%

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

SQQQ vs. SDS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
SDS ProShares UltraShort S&P500	-17.06%	-26.79%	-29.45%	-31.53%	30.69%	-43.02%	-49.91%	-41.17%	6.04%	-32.02%

Correlation

The correlation between SQQQ and SDS is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Feb 12, 2010	0.90

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

SQQQ vs. SDS - Sectors Allocation Comparison

Sectors	SQQQ	SDS
Financial Services	97.1%	94.3%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

SQQQ vs. SDS — 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: 0
SQQQ Martin Ratio Rank: 0

SDS

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

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. SDS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro Short QQQ (SQQQ) and ProShares UltraShort S&P500 (SDS). 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	SDS	Difference
Sharpe ratio: Return per unit of total volatility	-1.37	-1.47	+0.11
Sortino ratio: Return per unit of downside risk	-2.63	-2.28	-0.35
Omega ratio: Gain probability vs. loss probability	0.72	0.75	-0.03
Calmar ratio: Return relative to maximum drawdown	-0.99	-0.96	-0.03
Martin ratio: Return relative to average drawdown	-1.82	-1.69	-0.14
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. SDS - Sharpe Ratio Comparison

The current SQQQ Sharpe Ratio is -1.37, which is comparable to the SDS Sharpe Ratio of -1.47. The chart below compares the historical Sharpe Ratios of SQQQ and SDS, 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	SDS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.37	-1.47	+0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.74	-0.66	-0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.85	-0.78	-0.07
Sharpe Ratio (All Time) Calculated using the full available price history	-0.88	-0.66	-0.22

Drawdowns

SQQQ vs. SDS - Drawdown Comparison

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

Drawdown Indicators

	SQQQ	SDS	Difference
Max Drawdown Largest peak-to-trough decline	-100.00%	-99.85%	-0.15%
Max Drawdown (1Y) Largest decline over 1 year	-65.95%	-36.20%	-29.75%
Max Drawdown (3Y) Largest decline over 3 years	-92.38%	-68.14%	-24.24%
Max Drawdown (5Y) Largest decline over 5 years	-97.23%	-75.54%	-21.69%
Max Drawdown (10Y) Largest decline over 10 years	-99.98%	-96.48%	-3.50%
Current Drawdown Current decline from peak	-100.00%	-99.85%	-0.15%
Average Drawdown Average peak-to-trough decline	-92.40%	-82.73%	-9.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	35.73%	20.51%	+15.22%

Volatility

SQQQ vs. SDS - Volatility Comparison

ProShares UltraPro Short QQQ (SQQQ) has a higher volatility of 13.75% compared to ProShares UltraShort S&P500 (SDS) at 5.59%. This indicates that SQQQ's price experiences larger fluctuations and is considered to be riskier than SDS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SQQQ	SDS	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.75%	5.59%	+8.16%
Volatility (6M) Calculated over the trailing 6-month period	36.45%	17.81%	+18.64%
Volatility (1Y) Calculated over the trailing 1-year period	47.79%	23.58%	+24.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	66.64%	33.64%	+33.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	66.11%	35.82%	+30.29%

SQQQ vs. SDS - Expense Ratio Comparison

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

Dividends

SQQQ vs. SDS - Dividend Comparison

SQQQ's dividend yield for the trailing twelve months is around 12.48%, more than SDS's 5.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDS ProShares UltraShort S&P500	5.79%	5.88%	7.89%	5.77%	0.35%	0.00%	0.92%	1.84%	1.28%	0.09%
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 SQQQ and SDS in my portfolio?

With a correlation of 0.94, SQQQ and SDS 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, SQQQ or SDS?

SQQQ has higher volatility (13.75%) compared to SDS (5.59%). In terms of maximum drawdown, SQQQ dropped -100.00% vs SDS's -99.85%.

Which ETF is better, SQQQ or SDS?

On 10-year performance, SDS leads with -27.72% vs -56.01% for SQQQ. On fees, SDS is cheaper at 0.91% per year. On volatility, SDS has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SQQQ or SDS?

Over the 10-year period, SDS has performed better with a -27.72% return vs -56.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SQQQ or SDS?

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

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

SQQQ has the higher dividend yield at 12.48%, compared with 5.79% for SDS.

What is the main difference between SQQQ and SDS?

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

Which has better risk-adjusted returns?

SQQQ currently has the higher Sharpe Ratio (-1.37 vs -1.47), 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.