ProShares UltraShort QQQ

ProShares UltraShort QQQ (QID) aims to return twice the opposite of the Nasdaq-100 Index's move each day. It uses swaps and futures instead of owning stocks. It is built for short-term bets against large, tech-heavy Nasdaq companies, not for holding. Because its exposure resets daily, its price fell about 99% over the 10 years to October 27, 2026. Its 0.95% expense ratio matches the average of similar funds.

• Over the year to Oct 27, 2026, QID returned -26.0%, 2nd of 3 among similar funds.
• Its 5-year annualized return was -28.1% and its 10-year -37.5%.
• In the 2020 COVID crash, while stocks fell, it gained 59.8%.
• Its worst full calendar year was 2020 (-69.7%); its best was 2008 (+77.0%).
• The deepest fall in its price history was 100% (Nov 20, 2008 to Oct 6, 2026), not yet recovered.

As of Aug 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (119.59% of net assets), with its inverse exposure coming from 11 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Aug 31, 2026, investors added a net $17.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -1.37%, +14.08%, -7.88%.

QID follows the Nasdaq-100 Index, which Nasdaq Inc. builds and maintains. The index holds the 100 largest non-financial companies listed on Nasdaq-affiliated exchanges, including some non-US companies, and weights them by market value (market capitalization). Nasdaq reviews the list every December and adjusts weights in March, June and September. The fund does not own these stocks. Instead, it uses derivatives, which are contracts whose value comes from something else. These are mainly swap agreements with major global financial institutions and Nasdaq-100 futures contracts. Spare cash goes into Treasury bills, repurchase agreements and a ProShares money market ETF. As of August 31, 2026, its reported holdings were repurchase agreements, total return swaps and Nasdaq-100 E-mini futures.

The target is -2x the index for a single day only, measured from one net asset value calculation to the next. Each day ProShare Advisors rebalances. When the index rises, the fund shrinks its short exposure. When the index falls, it adds more. Because of this daily reset, returns over weeks or years can drift far from -2x the index, and they are often worse when markets swing back and forth. The prospectus warns that if the index nears a 50% gain within one day, holders could lose their entire investment. Swap partners that fail to pay can also cause losses.

• QID charges 0.95% a year, versus an average of 0.95% for the similar funds below.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.04% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $97 in the first year and $1,209 over 10 years (assuming a 5% annual return).

Its daily reset and -2x inverse exposure have wiped out almost all of its value over long periods, which makes it a tool for short bets rather than long holding.

QID has jumped during market crashes. It gained 133.7% from the market's October 2007 peak to its March 2009 low, 59.8% in the 2020 COVID crash and 83.8% in the 2022 bear market. But those gains came in short bursts. In rising markets the losses were deep. Its worst calendar year was 2020, when it fell 69.7%. From a November 2008 peak through October 6, 2026, its price lost nearly 100% and never recovered. A retiree holding it as a long-term hedge who needed to sell shares would most likely have sold at a small fraction of the purchase price. The trailing yield was 6.06% as of October 27, 2026, paid quarterly, but that has not made up for the price losses. Annual costs are 0.95%. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (nasdaq-100), same direction.