What Is the PSQ ETF? A Complete Guide to Returns, Fees, Holdings and Alternative ETFs
ProShares Short QQQ is an inverse ETF that tracks the opposite of the Nasdaq 100's daily move at one times the magnitude, and it is used for bearish bets and short-term hedging. The key points to check are the compounding effect of daily resets, the fees and the market outlook. It trades under the ticker PSQ.
SubscribeWhat Is ProShares Short QQQ?
It is an inverse ETF designed to move in the opposite direction of the Nasdaq 100's daily change at one times the magnitude. Its price is built to rise when the index falls, so it is used for bearish bets and short-term hedging.
It suits investors who want to bet on a short-term decline in the Nasdaq 100 or hedge the downside risk of their stock holdings over the short term.
It is an actively managed ETF operated by ProShares.
How Does ProShares Short QQQ Work?
| Item | Details |
|---|---|
| Tracked index | Nasdaq 100 (inverse) |
| Strategy | Inverse (opposite of the daily move, 1x) |
| Rebalancing frequency | Daily (daily reset) |
| Dividend frequency | Quarterly |
| Total expense ratio | 0.95% |
The fund uses derivatives such as swaps, aiming to track the opposite of the Nasdaq 100's daily percentage change at one times the magnitude. Because its exposure is reset every day, cumulative returns over periods longer than one day can differ from a simple 1x inverse of the index, which is why it is used as a short-term trading tool.
- An inverse structure that bets on a decline in the Nasdaq 100
- Also used as a short-term hedging tool
ProShares Short QQQ Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $589.9M, and the total expense ratio (Expense Ratio) is 0.95% per year.
Unlike a typical index ETF, it profits when the market falls. Because of its daily reset, cumulative returns can differ significantly from expectations if it is held for the long term.
ProShares Short QQQ Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAn inverse ETF profits when the Nasdaq 100 falls and loses money when it rises. Considering that the Nasdaq 100 has trended upward over the long term, it is unsuitable for long-term holding, and because of the daily reset, cumulative returns can be eroded in choppy markets.
Money tends to flow into inverse ETFs as hedging or bearish-bet demand when concerns about a market decline grow, and it tends to leave quickly when a rally continues. The fund flows are centered on short-term, rapid-turnover trading.
ProShares Short QQQ Pros and Cons
Its strengths are that it profits when the Nasdaq 100 falls and is used for short-term hedging, while its drawbacks are losses in rising markets, the daily reset and the cost burden of fees.
💪 Key Strengths
⚠️ Points to Watch
ProShares Short QQQ Alternative ETFs and Related Products
SQQQ, SH, SDS and the others shown in the table are inverse or leveraged inverse ETFs with different underlying indexes or multiples. You can also compare RWM to bet on a decline in the Russell 2000, DOG to bet on a decline in the Dow, and MYY if you want a 2x inverse of the Nasdaq 100.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SOXS | Direxion Daily Semiconductor Bear 3X ETF | $52.08 | +24.9% | $4.0B | 1.00% | 22.76% | -92.2% |
 SQQQ | ProShares UltraPro Short QQQ -3x Shares | $41.83 | +10.6% | $1.8B | 0.94% | 7.78% | -37.3% |
 SH | ProShares Short S&P500 -1x Shares | $32.86 | +1.9% | $932.9M | 0.88% | 3.87% | -9.6% |
 SPXU | ProShares UltraPro Short S&P 500 | $36.00 | +5.4% | $405.7M | 0.90% | 6.05% | -29.4% |
 SDS | ProShares UltraShort S&P500 -2x Shares | $55.89 | +3.7% | $359.1M | 0.91% | 5.07% | -19.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 IQMM | ProShares GENIUS Money Market ETF | 2.31% | $100.12 | +0.0% | $0.0M | - | 2.41% |
 UAMY | United States Antimony Corp | 0.27% | $2.98 | -5.7% | $446.0M | - | - |
 USLM | United States Lime & Minerals Inc | 0.53% | $111.61 | -2.0% | $3.2B | 23.9 | 0.22% |
 BNO | United States Brent Oil Fund LP | 0.14% | $71.39 | +0.9% | $0.0M | - | - |
ProShares Short QQQ Investor Checkpoints
Here are the points to review before investing in PSQ. As an inverse ETF, it is important to check in advance the risk of losses in rising markets, the compounding effect of the daily reset, its unsuitability for the long term and the level of fees.
| Checkpoint | What to check | Current status |
|---|---|---|
| 💵 Expense ratio | The cumulative impact of an inverse product's high fees | On the higher side |
| 📉 Direction | Understanding the structure that moves opposite to the Nasdaq 100 | Inverse 1x |
| 🔄 Holding period | Suited to the short term because of the daily reset | Short term recommended |
| ⚠️ Unsuitable for the long term | Long-term holding is unsuitable because the index trends upward | For short-term use |
You lose money when the Nasdaq 100 rises, and considering that the index has trended upward over the long term, long-term holding is unsuitable. In choppy markets, the compounding effect of the daily reset can cause cumulative returns to differ significantly from expectations.
This inverse ETF suits investors who want to bet on a short-term decline in the Nasdaq 100 or hedge their stock holdings over the short term, and it is not recommended as a long-term investment vehicle. It is advisable to use it from a short-term perspective after fully understanding the daily reset structure.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 4, 2026.
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