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 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.
SQQQ MSCI ESG Analytics Insight
The MSCI ESG Fund Quality Score measures the ability of ETF underlying holdings to manage key medium to long-term risks and opportunities arising from environmental, social, and governance factors, as determined by MSCI ESG Research LLC. As of May 17, 2018 the ProShares UltraPro Short QQQ MSCI ESG Fund Quality Score is 6.89 out of 10.
The fund’s Peer Rank reflects the ranking of a fund’s MSCI ESG Fund Quality Score against the scores of other funds within the same peer group, as defined by the Thomson Reuters Lipper Global Classification. SQQQ ranks in the 96th percentile within its peer group and in the 92nd percentile within the global universe of all funds in MSCI ESG Fund Metrics coverage.
SQQQ Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SQQQ. SQQQ is rated a 5 out of 5.