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