QQQA Profile
The ProShares Nasdaq-100 Dorsey Wright Momentum ETF is an investment fund designed to capitalize on momentum within the Nasdaq-100 Index by utilizing a strategy developed by Dorsey, Wright & Associates, LLC. The fund tracks an index composed of 21 securities selected from the Nasdaq-100 Index based on their high price momentum, reflecting their recent performance strength. The index aims to capture and invest in the top-performing securities that exhibit robust momentum characteristics.
The ETF primarily invests in equities and depositary receipts, including American Depositary Receipts (ADRs), which represent foreign stocks listed on U.S. exchanges. By focusing on high-momentum stocks, the fund aims to achieve capital appreciation by selecting securities that have demonstrated superior price performance. This approach targets companies with strong recent performance trends, leveraging momentum to potentially enhance returns.
The fund's investment strategy involves concentrating its holdings in specific industries or sectors, as well as potentially focusing on particular countries or regions. This concentration aligns with the structure of the underlying index, which may result in a higher exposure to certain sectors or geographical areas compared to more broadly diversified funds. Investors should be aware of the increased risk associated with this concentration strategy, which can lead to greater volatility and sector-specific performance variations.
Being a non-diversified fund, the ProShares Nasdaq-100 Dorsey Wright Momentum ETF may exhibit higher volatility and sector concentration compared to diversified funds. Its focus on momentum investing and sector concentration means that its performance is closely tied to the selected securities' trends and market conditions, which can offer both opportunities for higher returns and increased risk.
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