TWM vs. SQQQ

Last updated Jun 24, 2026

TWM (ProShares UltraShort Russell2000) and SQQQ (ProShares UltraPro Short QQQ) are both Leveraged Equities funds from ProShares - TWM tracks the Russell 2000 (-200%) while SQQQ tracks the NASDAQ-100 Index (-300%). Both are passively managed. Over the past 10 years, TWM returned -28.49%/yr vs -56.24%/yr for SQQQ. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.95% expense ratio.

Performance

TWM vs. SQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort Russell2000 (TWM) 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, TWM achieves a -32.09% return, which is significantly higher than SQQQ's -40.31% return. Over the past 10 years, TWM has outperformed SQQQ with an annualized return of -28.49%, while SQQQ has yielded a comparatively lower -56.24% annualized return.

TWM

• 1D: 1.98%
• 1M: -7.68%
• YTD: -32.09%
• 6M: -28.69%
• 1Y: -50.37%
• 3Y*: -30.94%
• 5Y*: -17.34%
• 10Y*: -28.49%

SQQQ

• 1D: 9.83%
• 1M: -2.27%
• YTD: -40.31%
• 6M: -37.80%
• 1Y: -61.11%
• 3Y*: -53.86%
• 5Y*: -46.89%
• 10Y*: -56.24%

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

TWM vs. SQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TWM ProShares UltraShort Russell2000	-32.09%	-24.71%	-19.35%	-26.84%	28.43%	-35.43%	-60.01%	-38.40%	19.15%	-26.36%
SQQQ ProShares UltraPro Short QQQ	-40.31%	-53.05%	-49.79%	-73.61%	82.40%	-60.87%	-86.40%	-65.92%	-20.83%	-58.67%

Correlation

The correlation between TWM and SQQQ is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010	0.74

The correlation between TWM and SQQQ has been stable across timeframes, ranging from 0.66 to 0.74 - a consistent structural relationship.

TWM vs. SQQQ - Sectors Allocation Comparison

Sectors	TWM	SQQQ
Financial Services	100.3%	122.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

TWM vs. SQQQ — Risk / Return Rank

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

TWM

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

SQQQ

SQQQ Risk / Return Rank: 1
SQQQ Sharpe Ratio Rank: 1
SQQQ Sortino Ratio Rank: 0
SQQQ Omega Ratio Rank: 1
SQQQ Calmar Ratio Rank: 1
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.

TWM vs. SQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort Russell2000 (TWM) 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.

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.

	TWM	SQQQ	Difference
Sharpe ratio: Return per unit of total volatility	-1.28	-1.14	-0.14
Sortino ratio: Return per unit of downside risk	-2.08	-2.07	0.00
Omega ratio: Gain probability vs. loss probability	0.78	0.78	0.00
Calmar ratio: Return relative to maximum drawdown	-0.99	-0.96	-0.02
Martin ratio: Return relative to average drawdown	-1.64	-1.81	+0.17

TWM vs. SQQQ - Sharpe Ratio Comparison

The current TWM Sharpe Ratio is -1.28, which is comparable to the SQQQ Sharpe Ratio of -1.14. The chart below compares the historical Sharpe Ratios of TWM 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.

Drawdowns

TWM vs. SQQQ - Drawdown Comparison

The maximum TWM drawdown since its inception was -99.94%, roughly equal to the maximum SQQQ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for TWM and SQQQ.

Drawdown Indicators

	TWM	SQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-99.94%	-100.00%	+0.06%
Max Drawdown (1Y) Largest decline over 1 year	-51.15%	-63.52%	+12.37%
Max Drawdown (3Y) Largest decline over 3 years	-74.07%	-92.51%	+18.44%
Max Drawdown (5Y) Largest decline over 5 years	-76.44%	-97.27%	+20.83%
Max Drawdown (10Y) Largest decline over 10 years	-96.79%	-99.98%	+3.19%
Current Drawdown Current decline from peak	-99.93%	-100.00%	+0.07%
Average Drawdown Average peak-to-trough decline	-87.29%	-92.73%	+5.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	30.89%	36.37%	-5.48%

Volatility

TWM vs. SQQQ - Volatility Comparison

The current volatility for ProShares UltraShort Russell2000 (TWM) is 13.21%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 26.69%. This indicates that TWM 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

	TWM	SQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.21%	26.69%	-13.48%
Volatility (6M) Calculated over the trailing 6-month period	28.79%	43.33%	-14.54%
Volatility (1Y) Calculated over the trailing 1-year period	39.41%	53.65%	-14.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	45.25%	67.53%	-22.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	45.84%	66.47%	-20.63%

TWM vs. SQQQ - Expense Ratio Comparison

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

Dividends

TWM vs. SQQQ - Dividend Comparison

TWM's dividend yield for the trailing twelve months is around 6.67%, less than SQQQ's 11.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SQQQ ProShares UltraPro Short QQQ	11.44%	9.36%	10.23%	8.01%	0.28%	0.00%	2.15%	2.92%	1.47%	0.14%
TWM ProShares UltraShort Russell2000	6.67%	5.36%	6.21%	4.72%	0.17%	0.00%	0.41%	1.49%	0.73%	0.05%

Frequently Asked Questions

Can I hold both TWM and SQQQ in my portfolio?

TWM and SQQQ have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TWM or SQQQ?

SQQQ has higher volatility (26.69%) compared to TWM (13.21%). In terms of maximum drawdown, TWM dropped -99.94% vs SQQQ's -100.00%.

Which ETF is better, TWM or SQQQ?

On 10-year performance, TWM leads with -28.49% vs -56.24% for SQQQ. Both ETFs have the same 0.95% expense ratio. On volatility, TWM has been the lower-risk option at 13.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TWM or SQQQ?

Over the 10-year period, TWM has performed better with a -28.49% return vs -56.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TWM or SQQQ?

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

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

SQQQ has the higher dividend yield at 11.44%, compared with 6.67% for TWM.

What is the main difference between TWM and SQQQ?

TWM tracks Russell 2000 (-200%), while SQQQ tracks NASDAQ-100 Index (-300%).

Which has better risk-adjusted returns?

SQQQ currently has the higher Sharpe Ratio (-1.14 vs -1.28), 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.