MZZ vs QQQD

MZZCProShares UltraShort MidCap400

QQQDCDirexion Daily Magnificent 7 Bear 1X ETF

In short

MZZ A 2006-vintage bear trade on mid-cap America: MZZ aims to deliver two times the inverse of the S&P MidCap 400's daily move, one trading day at a time, while most inverse funds point at the big large-cap indexes.

QQQD Fading the Magnificent 7 without a leverage multiplier: QQQD aims for -100% of the Indxx Magnificent 7 Index's daily move, one-for-one, at 0.50% net of a waiver through September 1, 2027.

Stated mandate

MZZ The fund seeks daily investment results, before fees and expenses, equal to two times the inverse of the S&P MidCap 400's daily performance.

QQQD The fund seeks daily investment results equal to 100% of the inverse performance of the Indxx Magnificent 7 Index, before fees and expenses.

Why people hold it

• MZZ Most inverse funds aim at the S&P 500, the Dow or the Nasdaq-100. This one targets the S&P MidCap 400, a benchmark built to measure 400 mid-sized US companies.spglobal.com
• Launched in 2006, part of the original ProShares leveraged and inverse lineup, and still running the same daily -2x mandate nearly two decades later.
• Sibling MYY tracks the same index at -1x; MZZ doubles the daily dose for the same 0.95% net fee (waived through September 30, 2027 in both cases).
• At 0.95% net of a waiver through September 30, 2027, the fee sits near the median for leveraged and inverse funds, in line with ProShares stablemates like PSQ and RWM at 0.95% net.

• QQQD One-for-one inverse, not 2x or 3x. A 1% index gain is designed to show up as roughly a 1% fund loss that day, and the reverse on down days, with no leverage stacked on top.direxion.com
• 0.50% net of a waiver through September 1, 2027, below the category median and below the 0.95% at PSQ and DOG (net of waivers through September 30, 2027).
• Surgical target: the short exposure is to the Magnificent 7 basket itself, not a broad Nasdaq index where those seven names get diluted by dozens of others.direxion.com
• Despite launching in 2024, it stands in the upper half of a crowded bear and inverse peer group.

Worth knowing

• MZZ Exposure resets daily. Held longer, each day's return compounds, and ProShares' own filings say results over longer periods are unlikely to be a simple -2x of the index.sec.gov
• That 0.95% is net of a waiver through September 30, 2027; the gross ratio is 9.03%, so the waiver, not scale, is doing the heavy lifting on cost.
• One of the smaller and more thinly traded names in the lineup, so spreads and order type matter more here than with the headline inverse funds.

• QQQD Exposure resets every day. Hold longer than a day and compounding means the result can drift from the simple inverse of the index's move over that stretch.direxion.com
• Seven mega-caps drive everything. One earnings surprise or one AI headline can move the whole basket, with no other holdings to soften it.direxion.com
• That 0.50% is a net figure. Gross expenses run 1.08%, so the cost picture shifts if the waiver is not extended past September 1, 2027.

Full MZZ profile⁠

Full QQQD profile⁠