⚠️ NOT FINANCIAL ADVICE — This is a high-risk leveraged product. Read full disclaimer
🚨 SQQQ is a 3x leveraged ETF. You could lose a substantial portion of your investment. This is NOT a recommendation.
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SQQQ 3x Short

ProShares UltraPro Short QQQ

Shorts: NASDAQ-100 Index (QQQ)

Expense Ratio

0.95%

Leverage

3x Inverse

Issuer

ProShares

Inception

Feb 2010

⚠️

High Risk Leveraged Product

SQQQ is a 3x leveraged inverse ETF designed for short-term trading only. Daily rebalancing causes significant decay over time. This is NOT suitable for buy-and-hold investors. You could lose substantially more than your initial investment.

🚨

NOT A RECOMMENDATION

The information on this page is for educational purposes only. We are not recommending you buy, sell, or hold SQQQ or any other security. Do your own research. Consult a licensed financial advisor. You could lose money.

What SQQQ Shorts

SQQQ provides 3x inverse (-300%) daily exposure to the NASDAQ-100 Index. When the NASDAQ-100 falls 1% in a day, SQQQ aims to rise approximately 3%. Conversely, when the NASDAQ-100 rises 1%, SQQQ aims to fall approximately 3%.

The NASDAQ-100 includes 100 of the largest non-financial companies listed on the NASDAQ stock exchange, heavily weighted toward technology companies like Apple, Microsoft, Amazon, NVIDIA, and Meta.

How Leverage Works

If NASDAQ-100 drops 2% today...

PSQ (1x Short)
+2%
QID (2x Short)
+4%
SQQQ (3x Short)
+6%

Best Use Cases

  • Day trading during expected NASDAQ selloffs
  • Short-term hedging of tech-heavy portfolios
  • Tactical bearish bets on technology sector
  • Capitalizing on high-volatility down days

Key Risks

  • Leverage Decay: Daily rebalancing erodes value over time, even if you're right about direction
  • Volatility Drag: High volatility accelerates decay significantly
  • Expense Ratio: 0.95% annual fee compounds the decay
  • Unlimited Downside: If NASDAQ rises significantly, losses can exceed 100% of position
  • Tracking Error: Returns may not exactly match 3x inverse of daily index movement

Similar Instruments

PSQ
ProShares Short QQQ (1x)
QID
ProShares UltraShort QQQ (2x)
TECS
Direxion Tech Bear 3X
SOXS
Direxion Semiconductor Bear 3X

Frequently Asked Questions

Can I hold SQQQ long term?
No. SQQQ is designed for single-day holding periods. Due to daily rebalancing and leverage decay, holding SQQQ for extended periods will likely result in significant losses even if the NASDAQ-100 declines over that period. This is a trading instrument, not an investment.
What happens if NASDAQ-100 rises 33% while I hold SQQQ?
Theoretically, a 33% rise in the underlying would result in approximately 99% loss in SQQQ (3x inverse). However, due to daily rebalancing, the actual loss would differ. In extreme scenarios, you could lose your entire investment.
How does SQQQ compare to shorting QQQ directly?
SQQQ provides leveraged inverse exposure without margin requirements or borrowing costs. However, it has expense ratios and decay that shorting doesn't have. For short-term trades, SQQQ is simpler. For longer positions, direct shorting may be more efficient despite margin costs.
Is SQQQ suitable for hedging my portfolio?
Only for very short-term hedging (1-5 days). For longer hedging needs, consider 1x inverse ETFs like PSQ, put options, or direct short positions which don't suffer from leverage decay.