QQQD vs SMN

QQQDCDirexion Daily Magnificent 7 Bear 1X ETF

SMNCProShares UltraShort Materials

In short

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.

SMN The only -2x ETF pointed at the S&P 500's materials sector: chemicals, miners and packagers, flipped and doubled, reset every single day. A trading tool that has been listed since 2007, not a set-and-forget hedge.

Stated mandate

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

SMN The fund targets daily, pre-expense performance equal to negative two times the S&P Materials Select Sector SM Index.

Why people hold it

• 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.

• SMN ProShares bills it as the only -2x materials ETF, so geared inverse exposure to the S&P 500's chemical, mining and packaging names runs through this one ticker.proshares.com
• 0.95% net of a waiver through September 30, 2027. That sits near the category median and level with ProShares stablemates PSQ and DOG, both 0.95% net under waivers to the same date.
• Listed since January 2007, so the daily-reset machinery has run through nearly two decades of commodity cycles. Long life for a geared inverse fund.

Worth knowing

• 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.

• SMN The -2x target applies to a single day. Hold longer and each day's return compounds, so the result can land well away from -2x the index's move over that stretch.proshares.com
• A small fund and thinly traded, which can make the cost of getting in and out matter more than the expense ratio.
• That 0.95% is a capped figure, not the raw cost: the gross ratio is 6.56%, with the waiver running through September 30, 2027.

Full QQQD profile⁠

Full SMN profile⁠