PSQ Profile
The ProShares Short QQQ is an exchange-traded fund (ETF) designed to provide inverse exposure to the performance of the Nasdaq-100 Index. The fund aims to achieve daily returns that are opposite to the daily performance of this index by investing in a variety of financial instruments. These instruments are selected based on ProShare Advisors' belief that they will collectively deliver returns consistent with the fund's objective of delivering the inverse of the index’s daily performance.
The Nasdaq-100 Index comprises 100 of the largest non-financial companies listed on The Nasdaq Stock Market, representing a broad range of sectors except financial services. The ProShares Short QQQ ETF targets the performance of this index, which includes prominent technology, consumer discretionary, and healthcare companies, among others. By investing in this ETF, investors seek to benefit from declines in the value of the Nasdaq-100 Index, making it a tool for hedging or speculative strategies in a bearish market environment.
The fund’s investment strategy involves using derivatives, such as futures contracts and swap agreements, to achieve its objective of providing inverse exposure. This approach is designed to produce daily returns that are the opposite of the daily performance of the Nasdaq-100 Index. The fund’s performance is therefore closely linked to short-term movements in the index, and it is not intended for long-term holding due to the effects of compounding and daily rebalancing.
As a non-diversified fund, the ProShares Short QQQ does not focus its investments on a specific sector or number of securities. Instead, it relies on financial instruments to achieve its investment goals. This strategy provides investors with a way to capitalize on declines in the Nasdaq-100 Index while managing exposure to the broader market. The fund is suited for investors seeking a tactical approach to bearish market conditions or those looking to hedge their portfolios against potential declines in the technology and growth-oriented sectors represented by the index.
|
