2024-07-09 10:17:45 ET
Summary
- ProShares UltraPro Short QQQ ETF provides -3x exposure to the Nasdaq.
- Its returns are slightly better than -3x due to low volatility and high index moves. SQQQ also accumulates a dividend.
- SQQQ is best suited for short-term trading and is a high risk, high reward. Holding long-term can trap you in an unrecoverable position.
The Nasdaq ( QQQ ) is consistently the best performing US stock index due to its concentration in mega-cap technology stocks, with a 50% exposure to the information technology sector. Shorting QQQ is risky - not only does it require excellent timing, both on entry and exit - but the potential losses are limitless....
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SQQQ: Can Offer Better Than -3x Returns