Stocks fell sharply this morning as developments around Russia’s attack on Ukraine revealed a quickly deteriorating situation in Kyiv. Investors fled risk assets in favor of safe-haven assets such as precious metals and bonds. The major indices were more than 2% down before the bell. The technology-focused Nasdaq 100 declined 3% in early trading, nearing bear market territory, nearly 19% below its November all-time high.
Bearish investors may want to go near-term short on the Nasdaq- 100 Index. Today we’ll highlight the method that many of the pros on Wall Street use for doing just that. However, you don’t need to be a professional to employ this tactic. You can learn how to benefit from market backslides with this valuable tool.
The ProShares Short QQQ (PSQ) fund offers inverse exposure to an index comprised of the 100 largest nonfinancial securities on the NASDAQ, making it a potentially attractive option for investors looking to bet against this sector of the U.S. economy.
It’s important to note that PSQ is designed to deliver inverse results over a single trading session, with exposure resetting monthly. Investors considering this ETF should understand how that nuance impacts the risk/return profile and realize the potential for “return erosion” in volatile markets. PSQ should definitely not be found in a long-term, buy-and-hold portfolio but may be a useful tool for more active investors looking to hedge existing exposure or bet on a decline in the top nonfinancial NASDAQ securities.
ProShares Short QQQ (PSQ) Data Summary
- Net Assets 478.22M
- Expense Ratio 0.95%
- Average Daily Volume $60.72M
Where to invest $1,000 right now...
Before you consider buying PSQ, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not PSQ.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself...
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Click here to find out the name and ticker of Keith's #1 pick...
