NASDAQ 100 (LONG & SHORT)
QQQ and PSQ are exchange-traded funds (ETFs) managed by ProShares that offer investors the opportunity to invest in the Nasdaq-100 index with and without leverage.
The Invesco QQQ ETF (QQQ) tracks the performance of the Nasdaq-100 index, which includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq stock exchange. The investment objective of QQQ is to provide investors with exposure to the technology and growth sectors of the U.S. stock market.
On the other hand, the ProShares Short QQQ ETF (PSQ) aims to provide daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the Nasdaq-100 index. This means that if the Nasdaq-100 index decreases by 1%, PSQ is designed to increase by 1%. PSQ is a “short” ETF, which means it is designed to provide investors with amplified returns when the index it tracks decreases.
Investors who are bearish on the technology and growth sectors of the U.S. stock market may consider investing in PSQ as a way to hedge against potential losses in a technology or growth stock portfolio or as a way to bet on the future decline of the Nasdaq-100 index.
It’s important to note that PSQ is a short-term trading tool and is not suitable for long-term investing. Due to the compounding effect of leverage, PSQ can experience significant losses over time if held for an extended period.
In summary, QQQ is an ETF that offers investors exposure to the technology and growth sectors of the U.S. stock market through the Nasdaq-100 index, while PSQ is a short ETF that provides investors with the opportunity to bet against the Nasdaq-100 index. Investors should carefully consider their investment objectives, risk tolerance, and investment horizon before investing in QQQ, PSQ, or any other ETF.