## [# Investors Plowing Money Into Short Nasdaq ETF ](/sections/features/investors-plowing-money-short-nasdaq-etf)
# Investors Plowing Money Into Short Nasdaq ETF
The fund has around $4.5B of inflows this year.
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[By Sumit Roy ](/authors/sumit-roy)
May 25, 2023
Edited by: Ron Day
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ETF investors are bracing for the relentless rally in tech stocks to end, piling into a short tech fund.
Tech has other plans.
The fund, the [**ProShares Ultra Pro Short QQQ (SQQQ)**,](/SQQQ) has seen inflows of $4.6 billion so far this year, the 11th-largest haul of any U.S.-listed ETF.
The massive inflows into an ETF that aims to deliver negative 3x the daily performance of the tech-heavy Nasdaq-100 is eye-catching in a year in which the [**Invesco QQQ Trust (QQQ)**](/qqq)—which tracks the Nasdaq-100—has leapt 24%, three times the [**SPDR S&P 500 ETF Trust (SPY)**’s](/SPY) gain.
SQQQ inflows suggest expectations of a Nasdaq pullback. Maybe investors are hedging long positions in QQQ or similar indexes and stocks.
Nevertheless, the bet hasn’t paid off; SQQQ has lost around half of its value this year.
It’s a similar situation to what we saw in 2022 with the [**ProShares UltraPro QQQ (TQQQ)**](/tqqq), when the 3x long fund registered a whopping $12.1 billion of inflows, even as the price of the ETF tumbled 79%.
Eventually, TQQQ rebounded. Traders who scooped up TQQQ at its lows of last year have been rewarded with a 74% gain in 2023.
Time will tell if SQQQ buyers are similarly rewarded.
Even after this year’s bounce, many of last year’s buyers of TQQQ are still under water. The fund is down 66% from its highs compared with 18% for QQQ.
The outsized loss in TQQQ, which has declined 3.7x more than its unleveraged counterpart, can be attributed to the decay that comes from rebalancing positions daily.
In any case, it’s interesting to see these massive flows into and out of these highly speculative ETFs. SQQQ is in vogue this year, but TQQQ and QQQ aren’t, even though they’ve been rallying (TQQQ has outflows of $3.6 billion on a year-to-date basis, while QQQ has outflows of $2.5 billion in the same period).
It just goes to show that ETF flows aren’t always as straightforward as they seem.
*Contact Sumit Roy @*
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[ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy)
Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including… [View Bio](/authors/sumit-roy)
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