ProShares UltraPro Short QQQ lost 62.69% in a year, showing the high cost of betting against Nasdaq-100 with leveraged ETFs.

ProShares UltraPro Short QQQ (SQQQ), a leveraged ETF designed to deliver -3x the daily return of the Nasdaq-100, has lost 62.69% over the past year while the Nasdaq-100 index rose 36.56%. This significant loss is due to the fund's high expense ratio of 0.95%, daily reset mechanics, and volatility decay, which erode value over time even if the long-term bearish thesis is correct. Over five and ten years, SQQQ has lost 96.15% and 99.97% respectively, making it a costly and risky tool for long-term investors. Alternatives like ProShares Short QQQ offer less leverage and lower costs, while simply reducing exposure to Nasdaq-100 or holding cash can be safer hedging strategies. Investors should consider if they are using SQQQ for short-term trading or long-term holding, as the latter often results in substantial losses.