The ProShares UltraPro Short QQQ ETF (SQQQ) surged 23.7% over the past month and 24.7% year to date, according to etf.com data, as technology stocks tumble amid renewed trade tensions and inflation concerns. With the Invesco QQQ Trust (QQQ) falling 7.6% in the past month and 8.1% year to date, SQQQ's inverse leveraged structure has made it an important hedging tool for investors seeking protection against the tech sector's downturn. SQQQ Gains as QQQ Faces Trouble SQQQ, which seeks daily investment results corresponding to three times the inverse of the Nasdaq-100 index's performance, has seen its assets under management grow to $2.3 billion with average daily volume reaching $2.1 billion. The ETF jumped as much as 7.6% on Monday before paring gains into the close. The Nasdaq-100 dropped to its lowest level in six months on Monday as investors reacted to President Donald Trump's announcement of extensive reciprocal tariffs, heightening fears of a global trade war. SQQQ v QQQ Source: etf.com QQQ's top 10 holdings paint a troubling picture, with eight showing year-to-date declines. Tesla Inc. (TSLA) leads with a loss of 32.7%, with Broadcom Inc. (AVGO) (-28.9%), Nvidia Corp. (NVDA) (-23.4%) and Alphabet Inc. (GOOGL) (-18.8%) following closely behind. Only two of QQQ's top 10 holdings have posted gains this year: Costco Wholesale Corp. (COST) is up 3.6% year to date, and Netflix Inc. (NFXL) has risen 4.5%. These consumer-focused companies have weathered the tech selloff better than their semiconductor and software counterparts. Market Pressures Mount Trading just under $39 Monday afternoon, SQQQ has become increasingly popular among traders looking to offset portfolio losses during the tech sector's decline. Unexpected inflation data and deteriorating consumer sentiment have added to market pressure alongside the trade tensions. These factors have hit the tech sector hardest, making SQQQ an increasingly popular tool for navigating the current volatility. Apple Inc. (AAPL), representing 9.5% of QQQ's assets, has fallen 9.9% year to date, while Microsoft Corp. (MSFT), at 7.7% of the fund, has dropped 11.3%. These heavyweight declines, combined with steeper losses from semiconductor stocks, have helped to create more favorable conditions for SQQQ's inverse strategy. Permalink | © Copyright 2025 etf.com. All rights reserved