What Is SQQQ? ProShares UltraPro Short QQQ
Last updated July 2026
Short answer
SQQQ is the ProShares UltraPro Short QQQ, a 3x inverse ETF that seeks three times the opposite of the Nasdaq-100's daily move. It gains when big tech drops and is used to hedge or bet against the Nasdaq short-term. Daily reset and leverage cause it to decay over time, so holding it for more than a day or two is generally a losing proposition in a rising or choppy market.
SQQQ is issued by ProShares and tracks Nasdaq-100 Index (-3x daily inverse). It charges a 0.95% expense ratio, holds approximately 1.99B in assets under management, yields about 11.03%, and launched in February 2010.
What is SQQQ?
SQQQ is the ProShares UltraPro Short QQQ, a 3x inverse ETF that seeks three times the opposite of the Nasdaq-100's daily move. It gains when big tech drops and is used to hedge or bet against the Nasdaq short-term. Daily reset and leverage cause it to decay over time, so holding it for more than a day or two is generally a losing proposition in a rising or choppy market.
SQQQ is issued by ProShares and tracks Nasdaq-100 Index (-3x daily inverse), so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
SQQQ holdings: what's actually inside
SQQQ does not hold a basket of individual stocks. It gets its exposure synthetically, through derivatives such as swaps and futures rather than by owning the underlying shares, so there is no conventional top-10 equity holdings list. See the description above for what SQQQ actually tracks and how that exposure is built.
The bottom line on SQQQ
SQQQ is a 3x inverse Nasdaq-100 fund built for short-term hedging or bearish trades, gaining when big tech falls. Daily reset and volatility decay make it lose value over time, especially in rising or choppy markets, so it is explicitly not a buy-and-hold instrument. It is a tactical tool for experienced traders who monitor positions closely.
More on SQQQ
Whether SQQQ is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is SQQQ a buy?
SQQQ yields 11.03% as of July 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see SQQQ dividend: yield and schedule.
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FAQ
What is SQQQ?
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SQQQ is the ProShares UltraPro Short QQQ, an inverse leveraged ETF that seeks to deliver three times the opposite of the Nasdaq-100's daily return. It rises when the Nasdaq-100 falls. It holds swaps and derivatives plus cash collateral rather than individual stocks.
What is SQQQ's ticker symbol?
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SQQQ, listed on Nasdaq. It is one of the most-traded inverse leveraged ETFs, widely used by traders to hedge technology exposure or bet on a decline in the Nasdaq-100 over short periods.
How does SQQQ work?
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SQQQ uses swaps and other derivatives to target minus three times the Nasdaq-100's daily percentage move. If the index falls 1% on a given day, SQQQ aims to rise about 3%, and vice versa. This objective applies to a single day; longer holding periods behave differently due to compounding.
Why does SQQQ lose value over time?
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Because its 3x inverse leverage resets daily. Daily compounding means that over multiple days SQQQ diverges from minus three times the index, and in volatile or sideways markets this creates decay. Since equities tend to rise over long periods, SQQQ also faces a structural headwind and generally grinds lower over time.
Is SQQQ good for hedging?
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It can be used as a short-term hedge against a Nasdaq-100 decline, but because of daily reset and decay it is a poor long-term hedge. Holding it for extended periods can cost money even when the market is roughly flat. It is best deployed tactically and closed out quickly.
What is SQQQ's expense ratio?
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0.95% per year, high relative to plain index funds. On top of the stated fee, leveraged and inverse products incur financing and derivative costs that add to the real cost of holding, which compounds the case against holding SQQQ long term.
Why does SQQQ show a high yield?
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Its reported yield of about 11.03% comes largely from income on the cash and Treasury collateral backing its derivatives, not from a sustainable stock dividend. The figure can be misleading; SQQQ is not an income investment, and its price behavior dominates any distribution.
What is SQQQ's AUM?
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Approximately 1.99B as of July 2026. Assets in inverse leveraged funds fluctuate with market sentiment; they often rise when traders expect or hedge against a market decline and shrink during sustained rallies.
Is SQQQ a good investment?
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It is a short-term trading and hedging tool, not a long-term investment. Daily reset, volatility decay, high fees, and the market's long-run upward drift all work against holding it. It can lose value steadily over time and is unsuitable for buy-and-hold. Walnut is not an investment adviser.
How do I buy SQQQ?
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SQQQ trades like a stock on Nasdaq during market hours through brokers that permit leveraged and inverse products. Some brokers require risk acknowledgments before allowing these trades. It should be actively monitored, not held passively.
SQQQ vs QQQ: what is the relationship?
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QQQ tracks the Nasdaq-100 long; SQQQ targets minus three times that index's daily return. They move in opposite directions, but SQQQ is not simply the mirror image over time because of daily reset and leverage decay. SQQQ is a short-term tactical tool, while QQQ is a long-term holding.
Can I hold SQQQ overnight?
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You can, but each additional day increases exposure to compounding effects that cause returns to drift from minus three times the index. It is designed for single-day objectives, and many traders close positions within a day or two to limit decay.
What are the risks of SQQQ?
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The main risks are leverage amplifying losses, daily-reset volatility decay eroding value over time, high fees, and the market's tendency to rise over the long run, which works directly against an inverse fund. Losses can accumulate quickly if the Nasdaq rallies.
When was SQQQ created?
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SQQQ launched in February 2010, issued by ProShares. It was among the early 3x leveraged and inverse ETFs and remains a popular vehicle for traders seeking amplified short exposure to the Nasdaq-100.
How do I compare SQQQ to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. SQQQ's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to July 2026; verify current figures against ProShares's fund page or your broker before investing.