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.

brimindinvest.com / compare / tqqq-vs-sqqqLIVE

TQQQ

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

$82.87

+13.63% this month

VERSUS

⟷

COMPARE

SQQQ

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

$36.75

-17.17% 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 ✓+127.20%

SQQQ -65.36%

Div. Yield

TQQQ 0.37%

SQQQ ✓12.19%

AUM

TQQQ ✓$39.77B

SQQQ $2.23B

Beta

TQQQ 3.71

SQQQ ✓-3.45

Metrics last refreshed: 6/22/2026

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 6/22/2026

TQQQ holds the edge across 3 of 5 key metrics in this comparison. TQQQ has delivered stronger 1-year price return (+127.20% vs -65.36% 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

Metric	TQQQ	SQQQ
ETF score	33.2	20.5
Latest close	$82.87	$36.75
1M return	+13.63%	-17.17%
6M return	+68.29%	-49.56%
1Y return	+127.20%	-65.36%

$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?

Period	TQQQ	SQQQ
1Y ago	$22.88K (+128.8%) started 2025-06-18	$3.68K (-63.2%) started 2025-06-18
5Y ago	$32.98K (+229.8%) started 2021-06-18	$453.35 (-95.5%) started 2021-06-18
10Y ago	$455.99K (+4459.9%) started 2016-06-20	$3.33 (-100.0%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Fund characteristics

Metric	TQQQ	SQQQ
Expense ratio	0.82%	0.95%
Total assets (AUM)	$39.77B	$2.23B
Dividend yield	0.37%	12.19%
Trailing P/E	42.48	N/A
Beta	3.71	-3.45
52-week change	127.20%	-65.36%

Risk & fund metrics

Metric	TQQQ	SQQQ
1Y return	+127.20%	-65.36%
6M return	+68.29%	-49.56%
1M return	+13.63%	-17.17%
1Y Sharpe ratio	1.75	-1.84
Beta	3.71	-3.45
Dividend yield	0.37%	12.19%
5Y CAGR	+25.75%	-48.62%

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 drawdown66.27%

TQQQ max wkly drop19.97%

SQQQ max wkly drop18.30%

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 drawdown99.98%

TQQQ max wkly drop44.80%

SQQQ max wkly drop35.23%

Performance metrics by period

Period	Metric	TQQQ	SQQQ
1Y	Growth	+127.20%	-65.36%
	CAGR	+127.32%	-65.38%
	Sharpe ratio	1.75	-1.84
	Max drawdown	36.97%	66.27%
	Max daily drop	14.28%	9.99%
	Max wkly drop	19.97%	18.30%
5Y	Growth	+214.39%	-96.42%
	CAGR	+25.75%	-48.62%
	Sharpe ratio	0.61	-0.72
	Max drawdown	81.66%	97.27%
	Max daily drop	18.31%	35.28%
	Max wkly drop	33.64%	33.28%
10Y	Growth	+4238.09%	-99.98%
	CAGR	+45.83%	-56.40%
	Sharpe ratio	0.84	-0.98
	Max drawdown	81.66%	99.98%
	Max daily drop	34.47%	35.28%
	Max wkly drop	44.80%	35.23%

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)	$39.77B	$2.23B
Dividend yield	0.37%	12.19%

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.

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