What happened to TQQQ in 2022 and why was it so devastating?

2022 context: 2022 was a historically challenging year for technology stocks as the Federal Reserve executed its most aggressive rate hiking campaign since the 1980s; the Fed raised rates from near-zero to 4.25-4.50% in approximately 12 months; rapidly rising rates affect technology stocks through multiple channels: higher discount rates reduce the present value of future earnings (which makes high P/E growth stocks particularly sensitive), higher rates increase borrowing costs for technology companies that use debt to fund growth, and higher rates shift investor preference from speculative growth assets toward income-bearing alternatives. TQQQ's 2022 performance: the Nasdaq-100 fell approximately 33% in 2022 — one of its worst annual performances; with 3x leverage, TQQQ fell approximately 80% from its late 2021 peak to its 2022 trough; $100,000 invested in TQQQ at the peak became approximately $20,000 at the trough. Recovery difficulty: after an 80% loss, TQQQ required a 400% gain to return to its peak; even with the Nasdaq-100's strong recovery in 2023 (driven by AI/ChatGPT excitement), TQQQ took years to recover its 2021 peak because the starting base was so low. The lesson: TQQQ's extraordinary long-term performance during 2012-2021 attracted retail investors who assumed the bull market would continue indefinitely; those who held TQQQ through 2022 without stop losses experienced life-altering losses; the asymmetry of leveraged ETF losses (a 50% loss requires 100% gain to recover; an 80% loss requires 400% gain) makes holding TQQQ without active management extremely dangerous.

What is the alternative to using TQQQ/SQQQ for Nasdaq-100 exposure?

For long-term Nasdaq-100 exposure: non-leveraged alternatives include QQQ (Invesco QQQ Trust, tracks the Nasdaq-100 at 0.20% expense ratio) or QQQM (Invesco Nasdaq-100 ETF, same index at 0.15% expense ratio, designed for long-term holding); these track the Nasdaq-100 without leverage and are appropriate for long-term investors; without leverage, a 33% Nasdaq-100 decline in 2022 meant a 33% QQQ loss (painful but recoverable without the 5x growth requirement that TQQQ faces). For short-term Nasdaq-100 shorts without 3x leverage: PSQ (ProShares Short QQQ) provides -1x inverse Nasdaq-100 daily exposure at lower leverage; the volatility decay is present but much less severe than SQQQ; QQQ put options allow directional bets with defined risk (maximum loss = option premium) and no volatility decay risk on the option premium already paid. For equity exposure with downside protection: buying QQQ and purchasing put options creates a protected equity position — the puts provide defined downside protection while maintaining upside participation; this is structurally similar to convertible bond exposure without the bond component; the cost is the put premium. For tactical Nasdaq-100 bets using options: options on QQQ allow directional bets (calls for bullish, puts for bearish) with defined maximum loss (option premium) and no volatility decay risk beyond the option's time value; QQQ options are among the most liquid options in the world, making option-based strategies practical for retail and institutional traders.

Can TQQQ be used as a long-term investment despite its risks?

The long-term TQQQ performance paradox: TQQQ's cumulative performance from 2010-2021 was extraordinary; a hypothetical $10,000 investment in TQQQ in early 2010 grew to millions by 2021, massively outperforming QQQ; this seems to suggest TQQQ is a viable long-term holding. Why TQQQ's historical performance is misleading for long-term holding: 2010-2021 was the longest sustained bull market in U.S. history; the Nasdaq-100 rose approximately 1,100% over this period with relatively few sustained declines; in this specific environment, 3x leveraged daily compounding worked powerfully; however, including 2022, TQQQ's performance from 2010-2022 dramatically underperformed what the historical pre-2022 data suggested. Path dependency: TQQQ's long-term performance is highly path-dependent — the ORDER of returns matters enormously; a 33% Nasdaq-100 decline early in the holding period (wiping 80% of TQQQ value) requires 5x growth to recover before additional gains compound; if 2022's bear market came in 2012 instead of 2021, the long-term TQQQ performance would be radically different. Academic research findings: multiple academic papers (including a well-known analysis by Avellaneda and Zhang) demonstrate that volatility drag from daily reset means leveraged ETFs will systematically underperform their theoretical long-term leverage multiple except in low-volatility trending markets; the precise historical TQQQ performance required a specific combination of sustained bull market and relatively low volatility that may not repeat. Conclusion: some academics and risk-tolerant investors use small TQQQ allocations (1-5% of portfolio) as a 'lottery ticket' technology position with planned periodic rebalancing; the majority of financial professionals advise against holding TQQQ as a core long-term holding.

Last updated: August 6, 2026

brimindinvest.com / compare / tqqq-vs-sqqqLIVE

TQQQ

ProShares UltraPro QQQ · ETF - 3x Leveraged Daily Nasdaq-100 (Short-Term Trading Tool)

$72.84

-4.68% this month

VERSUS

⟷

COMPARE

SQQQ

ProShares UltraPro Short QQQ · ETF - 3x Inverse Daily Nasdaq-100 (Short-Term Trading Tool)

$38.29

+0.03% this month

Scoreboard verdict

Across expense ratio, momentum, yield, fund size, risk

TQQQ

3

SQQQ

2

TQQQ LEADS 3/5

Comparison scoreboard

TQQQ LEADS 3/5

Exp. Ratio

TQQQ ✓0.82%

SQQQ 0.95%

1Y Return

TQQQ ✓+71.21%

SQQQ -56.74%

Div. Yield

TQQQ 0.58%

SQQQ ✓9.13%

AUM

TQQQ ✓$32.83B

SQQQ $2B

Beta

TQQQ 3.75

SQQQ ✓-3.46

Metrics last refreshed: 8/6/2026

Quick take

TQQQ vs SQQQ ETF Comparison: AI Score, Valuation, Performance and Upside

TQQQ (ProShares UltraPro QQQ) and SQQQ (ProShares UltraPro Short QQQ) are exact opposites — both 3x leveraged daily ETFs targeting the Nasdaq-100 Index from the same issuer (ProShares), with TQQQ delivering +3x the Nasdaq-100's daily return for aggressive technology bulls and SQQQ delivering -3x the Nasdaq-100's daily return for aggressive technology bears, both experiencing severe volatility decay making them appropriate only for short-term active traders.

TQQQ vs SQQQ is 3x long Nasdaq-100 for technology bull speculation (ProShares' maximum bullish Nasdaq-100 leverage, extraordinary gains during sustained tech bulls like 2010-2021, and extreme liquidity — catastrophic losses in 2022-style technology bear markets and severe volatility decay in sideways conditions) versus 3x inverse Nasdaq-100 for technology bear speculation (ProShares' maximum bearish Nasdaq-100 leverage, extraordinary gains during 2022-style bear markets, and AI-era technology bull sustained rally risk — both requiring strict holding period discipline measured in days, not months).

Live analysis · updated 8/6/2026

TQQQ holds the edge across 3 of 5 key metrics in this comparison. TQQQ has delivered stronger 1-year price return (+71.21% vs -56.74% for SQQQ).

Normalized 1Y performance

TQQQ

SQQQ

Recent returns

TQQQ

SQQQ

Who should consider this stock?

TQQQ may suit traders who:

→Want maximum 3x leveraged exposure to the Nasdaq-100 during anticipated technology bull market periods with the liquidity to enter and exit efficiently in intraday or multi-day trading strategies
→Have strict discipline for daily monitoring and pre-defined exit strategies that prevent holding TQQQ through technology bear markets where 80%+ losses occurred in 2022
→Understand volatility decay and use TQQQ for tactical short-term positions rather than as a long-term portfolio holding, with position sizing limited to a small fraction of overall portfolio

SQQQ may suit traders who:

→Want maximum 3x inverse exposure to the Nasdaq-100 during anticipated technology bear market periods — Fed rate hiking cycles, recession concerns, or specific events expected to cause sustained Nasdaq declines
→Have clear technical or fundamental thesis for Nasdaq-100 underperformance with pre-defined profit targets and stop losses given SQQQ's catastrophic losses during technology recoveries
→Use SQQQ for short-duration hedging of large technology equity positions rather than speculative directional bets, with understanding of the time decay limitations of holding inverse leveraged products

Performance & AI score

Performance & AI score
Metric	TQQQ	SQQQ
ETF score	32.1	20.6
Latest close	$72.84	$38.29
1M return	-4.68%	+0.03%
6M return	+39.24%	-42.29%
1Y return	+71.21%	-56.74%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

$10,000 invested — hypothetical growth (dividends reinvested)
Period	TQQQ	SQQQ
1Y ago	$17.23K (+72.3%) started 2025-08-05	$4.61K (-53.9%) started 2025-08-05
5Y ago	$23.26K (+132.6%) started 2021-08-05	$622.61 (-93.8%) started 2021-08-05
10Y ago	$315.53K (+3055.3%) started 2016-08-05	$4.78 (-100.0%) started 2016-08-05

Hypothetical — past performance does not guarantee future results.

Fund characteristics

Fund characteristics
Metric	TQQQ	SQQQ
Expense ratio	0.82%	0.95%
Total assets (AUM)	$32.83B	$2B
Dividend yield	0.58%	9.13%
Trailing P/E	37.34	N/A
Beta	3.75	-3.46
52-week change	71.21%	-56.74%

Risk & fund metrics

Risk & fund metrics
Metric	TQQQ	SQQQ
1Y return	+71.21%	-56.74%
6M return	+39.24%	-42.29%
1M return	-4.68%	+0.03%
1Y Sharpe ratio	1.14	-1.22
Beta	3.75	-3.46
Dividend yield	0.58%	9.13%
5Y CAGR	+17.21%	-45.47%

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

TQQQ max drawdown36.97%

SQQQ max drawdown59.62%

TQQQ max wkly drop19.97%

SQQQ max wkly drop22.55%

5Y risk snapshot

TQQQ max drawdown81.66%

SQQQ max drawdown97.27%

TQQQ max wkly drop33.64%

SQQQ max wkly drop33.28%

10Y risk snapshot

TQQQ max drawdown81.66%

SQQQ max drawdown99.97%

TQQQ max wkly drop44.80%

SQQQ max wkly drop35.23%

Performance metrics by period

Performance metrics by period
Period	Metric	TQQQ	SQQQ
1Y	Growth	+71.21%	-56.74%
	CAGR	+71.27%	-56.76%
	Sharpe ratio	1.14	-1.22
	Max drawdown	36.97%	59.62%
	Max daily drop	14.28%	10.07%
	Max wkly drop	19.97%	22.55%
5Y	Growth	+121.19%	-95.18%
	CAGR	+17.21%	-45.47%
	Sharpe ratio	0.51	-0.61
	Max drawdown	81.66%	97.27%
	Max daily drop	18.31%	35.28%
	Max wkly drop	33.64%	33.28%
10Y	Growth	+2894.45%	-99.96%
	CAGR	+40.49%	-54.87%
	Sharpe ratio	0.78	-0.92
	Max drawdown	81.66%	99.97%
	Max daily drop	34.47%	35.28%
	Max wkly drop	44.80%	35.23%

Fund overview

Fund overview
Category	TQQQ	SQQQ
Fund name	ProShares UltraPro QQQ	ProShares UltraPro Short QQQ
Type	ETF	ETF
Expense ratio	0.82%	0.95%
Total assets (AUM)	$32.83B	$2B
Dividend yield	0.58%	9.13%

TQQQ strengths

→3x Nasdaq-100 leverage amplifies technology bull market returns dramatically — during sustained Nasdaq-100 bull markets (2010-2021 saw multiple strong rallies), TQQQ generated extraordinary multi-year returns; $10,000 invested in TQQQ in early 2013 would have grown to $500,000+ by early 2022 (reflecting the exceptional Nasdaq-100 bull market environment)
→Extreme liquidity enables efficient large-block trading — TQQQ's enormous daily trading volume ($1-5 billion+ per day) creates tight bid-ask spreads and efficient execution even for large institutional positions
→Daily leverage reset allows tactical positioning around specific events — traders can build or reduce TQQQ positions around Fed meetings, earnings announcements, or economic data releases with intraday flexibility

SQQQ strengths

→3x inverse Nasdaq-100 leverage provides maximum downside amplification during technology bear markets — SQQQ's 2022 performance demonstrated its potential: the Nasdaq-100 fell approximately 33% in 2022, and SQQQ rose approximately 200%+ at its peak; traders who correctly timed the 2022 technology bear market and used SQQQ appropriately generated extraordinary profits
→SQQQ provides inverse exposure to the most widely followed technology benchmark (Nasdaq-100) — the Nasdaq-100 is the most recognized U.S. technology index; SQQQ positions are instantly understandable to market participants
→Active options market enables precise risk management strategies — SQQQ has an active options market allowing traders to define risk through put spreads, call debit spreads, or protective puts on existing SQQQ positions

Risks to watch — TQQQ

→3x leverage amplifies losses as severely as gains — a 33% decline in the Nasdaq-100 theoretically wipes out TQQQ holders; in 2022, the Nasdaq-100 fell approximately 33%, and TQQQ fell approximately 80%; TQQQ requires recovery of 5x just to return to the 2021 high after such a decline
→Volatility decay destroys value in choppy markets — even if the Nasdaq-100 ends a year flat after significant volatility, TQQQ will likely be significantly negative; the 3x daily reset creates severe compounding erosion
→Not appropriate for 'set and forget' investing — TQQQ in a retirement account is a common retail investor mistake; the asymmetric nature of losses (a 80% loss requires 400% gain to recover) makes TQQQ catastrophically risky as a buy-and-hold holding

Risks to watch — SQQQ

→In technology bull markets, SQQQ loses value catastrophically — from early 2023 through 2024, as the Nasdaq-100 rallied on AI excitement, SQQQ holders experienced extreme losses; the AI-driven Nasdaq-100 rally from late 2022 lows meant SQQQ lost 70-80% of its value as the technology sector recovered
→Volatility decay from 3x leverage means SQQQ loses value even in flat markets — identical to TQQQ but in reverse direction; SQQQ is a pure directional bet that degrades rapidly without sustained, directional Nasdaq declines
→The bull case for technology (AI revolution, cloud computing growth, mobile computing) makes sustained Nasdaq-100 declines hard to maintain — the structural tailwinds behind Nasdaq-100 companies make sustained multi-year technology bear markets historically rare (except 2000-2002 and 2022)

Frequently asked questions

Nasdaq-100 definition: the Nasdaq-100 (ticker: NDX) is an index of the 100 largest non-financial companies listed on the Nasdaq Stock Market, ranked by market capitalization; 'non-financial' excludes banks and insurance companies; the index is maintained by Nasdaq, Inc. and is rebalanced quarterly. Key constituents (approximate weights): Apple (~12%), Microsoft (~12%), NVIDIA (~8-10%), Amazon (~6%), Meta (~5%), Alphabet (Google, Class A and C combined ~7%), Tesla (~3%), Broadcom (~5%), and others; technology, communication services, and consumer discretionary companies dominate. QQQ connection: the Invesco QQQ Trust (QQQ ETF) tracks the Nasdaq-100 and is the second-largest ETF by AUM globally; QQQ trades $10-20 billion per day; TQQQ and SQQQ are 3x leveraged versions of QQQ's daily performance. Why it matters: the Nasdaq-100 is the primary institutional benchmark for U.S. technology sector performance; the Nasdaq-100's performance drives TQQQ and SQQQ; understanding what moves the Nasdaq-100 (Fed policy → tech valuations, AI chip spending, cloud computing growth, consumer spending on technology) is essential for using TQQQ/SQQQ effectively.

AI Prediction SignalNext 5 trading days

Members only

TQQQ

+2.8%BUY

SQQQ

+1.1%HOLD

Start Free Trial Log in

ML model trained on historical prices · 14-day free trial · No credit card required

Free public comparison

Want deeper AI forecasts?

This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.

Start Free Trial Read Investing Guides

Related comparisons