ProShares Short QQQ (PSQ) offers inverse exposure to the NASDAQ-100 index, an index of 100 tech-heavy companies listed on NASDAQ that excludes financials. This exposure is achieved by the fund using a combination of NASDAQ-100 futures, the NASDAQ-100 ETF (QQQ), and swaps on the index itself.
After the August inflation report came in hotter than anticipated, which hurt investor optimism for cooling prices and a less aggressive Federal Reserve, stocks fell sharply on Tuesday. Tech stocks mainly took a significant hit.
The tech-heavy Nasdaq composite has declined more than 25% year-to-date and more than 10% over the past month. In contrast, PSQ has gained 24.6% year-to-date and 11% over the past month to close its last trading session at $13.49.
PSQ has $1.50 billion in assets under management and a NAV of $13.61. Its gross expense ratio of 0.95% is significantly lower than the category average of 1.12%. The fund has a net flow of $783.72 million over the past year and $212.16 million over the past month.
The fund’s top holdings include Nasdaq 100 Index Swap Goldman Sachs International with a 19.9% weight, Nasdaq 100 Index Swap Citibank Na with 19% weight, and United States Treasury Bills with a 7.9% weight.
Uncertain Market Conditions
Since the hotter-than-expected inflation data for August has increased the odds of an aggressive interest rate hike, the market is expected to remain under pressure on concerns over the economy slipping into a recession. Therefore…
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