SQQQ Short Nasdaq ETF

3x Short

ProShares UltraPro Short QQQ

Shorts: NASDAQ-100 Index (QQQ)

Expense Ratio

0.95%

Leverage

3x Inverse

Issuer

ProShares

Inception

Feb 2010

SQQQ is the ProShares UltraPro Short QQQ, a 3x inverse NASDAQ short ETF that rises approximately 3% for every 1% the NASDAQ-100 falls. It is designed for short-term trading only; use the SQQQ calculator to estimate a one-day QQQ move before fees, tracking error, and daily reset effects.

NASDAQ Short ETF Quick Answers

SearchDirect Answer
SQQQ ETFSQQQ is a 3x inverse daily ETF tied to the NASDAQ-100 / QQQ.
NASDAQ short ETFCommon choices are PSQ 1x, QID 2x, and SQQQ 3x.
SQQQ calculatorUse the NASDAQ short ETF calculator for estimated SQQQ profit/loss.

Short Nasdaq ETFs Compared

If your real question is "which short Nasdaq ETF should I use?", start with leverage. These funds seek daily inverse exposure to the Nasdaq-100 or QQQ, so the holding period and volatility matter as much as the direction call.

TickerDaily TargetTypical FitMain Trade-Off
PSQ-1x QQQLower-volatility bearish Nasdaq exposureSmaller daily move than leveraged funds
QID-2x QQQIntermediate tactical short Nasdaq tradeMore compounding risk than PSQ
SQQQ-3x QQQHighest-risk short-term Nasdaq-100 bearish tradeDaily reset and leverage decay can dominate multi-day holds

Check the current fund provider pages for live expense ratios, assets, and prospectus language before trading. This table is educational, not a recommendation.

Official Source Checks

The top SERP results include product pages and broad ETF databases. This page combines those product facts with the ShortAssets calculator and a practical fit matrix.

PSQ: 1x inverse Nasdaq-100

ProShares describes PSQ as seeking the inverse (-1x) of the daily performance of the Nasdaq-100 Index before fees and expenses. It is the lower-leverage short Nasdaq ETF in the PSQ/QID/SQQQ set.

QID: 2x inverse Nasdaq-100

QID targets two times the inverse (-2x) of the Nasdaq-100's daily performance before fees and expenses. It sits between PSQ and SQQQ on the leverage spectrum.

SQQQ: 3x inverse Nasdaq-100

SQQQ targets three times the inverse (-3x) of the Nasdaq-100's daily performance before fees and expenses. That makes it the most aggressive of the common short Nasdaq ETF choices.

TickerOfficial SourceBest User Action
PSQProShares PSQ pageVerify -1x objective, current expenses, and holdings.
QIDProShares QID pageVerify -2x objective and daily reset language.
SQQQProShares SQQQ pageVerify -3x objective before using this page's scenario math.
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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.

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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%

How to Choose Between PSQ, QID, and SQQQ

  • Use PSQ when you want 1x inverse daily Nasdaq exposure and less leverage drag.
  • Use QID when you want amplified exposure but do not need the full 3x profile of SQQQ.
  • Use SQQQ only when you understand that a small QQQ rally can create a large daily loss.
  • Use the calculator before trading to model the one-day move, then assume multi-day results can differ because each fund resets daily.

Compare Nasdaq short ETF scenarios →

Scenario Checklist for a Short Nasdaq ETF Trade

Before choosing leverage, write down the exact Nasdaq-100 move you are trading. This keeps the page useful even when live prices, expenses, and volume change.

  • Underlying: Nasdaq-100 / QQQ, not the full Nasdaq Composite.
  • Time frame: One day is the cleanest fit for daily-reset products.
  • Leverage: PSQ is lower force, QID is middle force, SQQQ is maximum force in this set.
  • Exit: Decide whether you exit after the move, at the close, or at a fixed loss.
  • Verification: Check the official fund page and calculator before placing the order.

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

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.

How to short the NASDAQ step by step →