SQQQ ProShares UltraPro Short QQQ
SQQQ Fund Description
The ProShares UltraPro Short QQQ provides 3x inverse exposure to a modified market-cap-weighted index of 100 of the largest nonfinancial issues listed on the NASDAQ.
SQQQ FactSet Analytics Insight
SQQQ is the most aggressive of the 3 ProShares
“a trading tool as opposed to an investment vehicle” funds providing inverse exposure to the NASDAQNasdaq-100. The fund provides geared inverse (-3x) exposure to the Nasdaq-100—a 100-company index of firms listed on the tech-heavy NASDAQNasdaq that excludes financials. To provide this exposure, the fund uses swaps on the popular NASDAQNasdaq-100 ETF QQQ, swaps on the index itself, and futures. As with most inverse and leveraged products, SQQQ is designed to provide this exposure on a daily basis, not over long time horizons. Holding the fund for longer than a day opens the door to the effects of compounding on returns and will—especially in volatile markets—be unlikely to realize the stated -3x inverse exposure over time. This effect is magnified as you add leverage. The fund typically trades briskly, which speaks to the fund's utility as a trading tool as opposed to an investment vehicle. It also explains why so many seem willing to stomach the steep expense ratio of the fund.
|Performance [as of 06/23/16]||1 Month||3 Month||YTD||1 Year||3 Years||5 Years||10 Years|
SQQQ FactSet Analytics Block Liquidity
This measurement shows how easy it is to trade 25,000 shares of SQQQ. SQQQ is rated a 5 out of 5.