1 ETF You Shouldn’t Hesitate to Pick up Right Now

CEOs, investors, and analysts are sounding recessionary alarms for the U.S. economy. Experts are primarily concerned about the Federal Reserve’s aggressive rate hikes to bring inflation to its 2% target.

Indicators such as the inversion of the U.S. Treasury yields, the decline in pending home sales, and the plunge in global freight rates are also increasingly pointing toward a recession.

The ProShares Short QQQ (PSQ) offers inverse exposure to the Nasdaq-100 index. The fund seeks daily investment results corresponding to the inverse of the daily performance of the underlying index. The fund seeks to profit from a market decline and hence, provides a hedge against downside risk.

Over the past year, the ETF has gained 28.7%. It has gained 27.7% year-to-date and 11.3% over the past three months to close its last trading session at $13.83.

Here are the factors that could influence PSQ’s performance in the near term:

Fund Stats

PSQ has $1.58 billion in net assets. The fund’s current NAV is $13.83. It has an expense ratio of 0.95%, which is lower than the category average of 1.02%. Over the past year, the fund’s net inflow was $598.12 million. It has had a net inflow of $171.59 million over the past six months. It has a five-year beta of negative 0.98.

As of November 18, PSQ’s top holdings include CASH MGMT BILL with 3.49% weight and treasury bills. It holds short positions like in the NASDAQ 100 INDEX SWAP BARCLAYS CAPITAL CITIBANK NA with a negative 15.24% weight and NASDAQ 100 INDEX SWAP SOCIETE GENERALE with a negative 14.20% weight.


The Nasdaq-100 index has a 48.97% weight in the information technology sector, 17.08% in the consumer discretionary sector, and 15.83% in the communication services sector. The index’s top holdings include…

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