TYO vs. SQQQ
TYO (Direxion Daily 7-10 Year Treasury Bear 3X) and SQQQ (ProShares UltraPro Short QQQ) are both exchange-traded funds - TYO is a Leveraged Bonds fund tracking the NYSE 7-10 Year Treasury Bond Index, while SQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (-300%). Both are passively managed. Over the past 10 years, TYO returned 2.13%/yr vs -56.24%/yr for SQQQ. At a correlation of -0.17, they often move in opposite directions. TYO charges 1.08%/yr vs 0.95%/yr for SQQQ.
Performance
TYO vs. SQQQ - Performance Comparison
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Returns By Period
In the year-to-date period, TYO achieves a 7.50% return, which is significantly higher than SQQQ's -40.31% return. Over the past 10 years, TYO has outperformed SQQQ with an annualized return of 2.13%, while SQQQ has yielded a comparatively lower -56.24% annualized return.
TYO
- 1D
- -0.95%
- 1M
- -1.40%
- YTD
- 7.50%
- 6M
- 7.74%
- 1Y
- 5.39%
- 3Y*
- 7.07%
- 5Y*
- 12.78%
- 10Y*
- 2.13%
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%
TYO vs. SQQQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TYO Direxion Daily 7-10 Year Treasury Bear 3X | 7.50% | -7.64% | 18.94% | 1.06% | 58.83% | 7.47% | -28.56% | -18.71% | -1.42% | -8.94% |
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 TYO and SQQQ is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.08 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.03 |
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010 | -0.17 |
The correlation between TYO and SQQQ shifts across timeframes, from -0.17 (all time) to 0.17 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TYO vs. SQQQ — Risk / Return Rank
TYO
SQQQ
TYO vs. SQQQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 7-10 Year Treasury Bear 3X (TYO) 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.
| TYO | SQQQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.52 | ||
| Sortino ratioReturn per unit of downside risk | +2.70 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 0.78 | +0.30 |
| Calmar ratioReturn relative to maximum drawdown | 0.54 | -0.96 | +1.51 |
| Martin ratioReturn relative to average drawdown | 1.00 | -1.81 | +2.81 |
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Drawdowns
TYO vs. SQQQ - Drawdown Comparison
The maximum TYO drawdown since its inception was -89.25%, smaller than the maximum SQQQ drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for TYO and SQQQ.
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Drawdown Indicators
| TYO | SQQQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -89.25% | -100.00% | +10.75% |
Max Drawdown (1Y)Largest decline over 1 year | -10.00% | -63.52% | +53.52% |
Max Drawdown (3Y)Largest decline over 3 years | -24.40% | -92.51% | +68.11% |
Max Drawdown (5Y)Largest decline over 5 years | -24.40% | -97.27% | +72.87% |
Max Drawdown (10Y)Largest decline over 10 years | -52.21% | -99.98% | +47.77% |
Current DrawdownCurrent decline from peak | -77.30% | -100.00% | +22.70% |
Average DrawdownAverage peak-to-trough decline | -71.10% | -92.73% | +21.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.42% | 36.37% | -30.95% |
Volatility
TYO vs. SQQQ - Volatility Comparison
The current volatility for Direxion Daily 7-10 Year Treasury Bear 3X (TYO) is 4.29%, while ProShares UltraPro Short QQQ (SQQQ) has a volatility of 26.69%. This indicates that TYO 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.
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Volatility by Period
| TYO | SQQQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.29% | 26.69% | -22.40% |
Volatility (6M)Calculated over the trailing 6-month period | 10.61% | 43.33% | -32.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.36% | 53.65% | -39.29% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.23% | 67.53% | -44.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.17% | 66.47% | -46.30% |
TYO vs. SQQQ - Expense Ratio Comparison
TYO has a 1.08% expense ratio, which is higher than SQQQ's 0.95% expense ratio.
Dividends
TYO vs. SQQQ - Dividend Comparison
TYO's dividend yield for the trailing twelve months is around 2.83%, 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% |
TYO Direxion Daily 7-10 Year Treasury Bear 3X | 2.83% | 3.69% | 4.22% | 3.62% | 0.09% | 0.00% | 0.36% | 1.58% | 0.32% | 0.00% |
Frequently Asked Questions
TYO and SQQQ have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SQQQ has higher volatility (26.69%) compared to TYO (4.29%). In terms of maximum drawdown, TYO dropped -89.25% vs SQQQ's -100.00%.
On 10-year performance, TYO leads with 2.13% vs -56.24% for SQQQ. On fees, SQQQ is cheaper at 0.95% per year. On volatility, TYO has been the lower-risk option at 4.29%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TYO has performed better with a 2.13% return vs -56.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SQQQ is cheaper with a 0.95% expense ratio, compared with 1.08% for TYO.
SQQQ has the higher dividend yield at 11.44%, compared with 2.83% for TYO.
TYO is categorized as Leveraged Bonds, while SQQQ is Leveraged Equities. TYO tracks NYSE 7-10 Year Treasury Bond Index, while SQQQ tracks NASDAQ-100 Index (-300%). They also come from different issuers: Direxion and ProShares. Their fees differ too: 1.08% for TYO and 0.95% for SQQQ.
TYO currently has the higher Sharpe Ratio (0.38 vs -1.14), 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.
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