What ETF is the opposite of QQQ? (2024)

What ETF is the opposite of QQQ?

The ProShares Short QQQ (PSQ) returns the inverse of the index on a one-to-one basis. The ProShares UltraShort QQQ (QID) is a 2x inverse ETF, and the ProShares UltraPro UltraShort QQQ (SQQQ) is a 3x inverse ETF.

What is the inverse ETF for QQQ?

ProShares UltraPro Short QQQ (SQQQ)

Built to deliver three times the inverse performance of the Nasdaq 100, when stocks like Apple, Microsoft, Amazon, Nvidia, Meta, Tesla and Alphabet decline, SQQQ investors score gains that amount to triple the index's loss. Remember, a triple inverse performance fund is quite risky.

Is SQQQ opposite of QQQ?

The correlation between SQQQ and QQQ is -1.00. This indicates that the assets' prices tend to move in opposite directions.

What ETF is inverse to Nasdaq?

ProShares UltraPro Short QQQ SQQQ

This ETF provides three times inverse exposure to the daily performance of the Nasdaq-100 Index, charging 95 basis points (bps) in annual fees. It has AUM of $1.5 billion and trades in average daily volume of about 69 million shares.

What is the largest inverse ETF?

The largest Inverse ETF is the Simplify Volatility Premium ETF SVOL with $846.07M in assets. In the last trailing year, the best-performing Inverse ETF was SVIX at 108.47%. The most recent ETF launched in the Inverse space was the ProShares UltraShort Bitcoin ETF - SC - United States SBIT on 04/02/24.

Why are inverse ETFs risky?

Because of how they are constructed, inverse ETFs carry unique risks that investors should be aware of before participating in them. The principal risks associated with investing in inverse ETFs include compounding risk, derivative securities risk, correlation risk, and short sale exposure risk.

Is Sqqq a good investment?

SQQQ ETFs can be a great way to make money during downturns, but they are also risky and require a lot of knowledge and experience. Make sure to do your research, stay informed about the market developments, and use leverage carefully—these can all help you develop a potentially successful SQQQ trading strategy.

What is the 3x inverse NASDAQ?

The NASDAQ-100® 3x Inverse Total Return Index aims to replicate the daily inverse performance of the NASDAQ-100® Total Return Index multiplied daily by three and adjusted to reflect certain inherent costs and revenues of maintaining the short positions required to achieve that aim.

Is VOO better than QQQ?

Average Return. In the past year, QQQ returned a total of 30.97%, which is significantly higher than VOO's 21.42% return. Over the past 10 years, QQQ has had annualized average returns of 17.90% , compared to 12.29% for VOO. These numbers are adjusted for stock splits and include dividends.

Should you buy SPY or QQQ?

Both QQQ and SPY are Viable Long-Term Holds

Both funds are recommended for a long-term buy-and-hold strategy. When choosing QQQ vs SPY, one should remember that the net assets of these funds include mostly large companies. The number of mid cap stocks is minimal.

Is it better to invest in SPY or QQQ?

SPY has the advantage in expense ratio with 0.09% compared to an expense ratio of 0.20% for QQQ. While the number seems small when you look at both numbers, the difference is quite significant since QQQ's expense ratio is twice that of QQQ.

Should I hold SQQQ overnight?

While the Fund has a daily investment objective, you may hold Fund shares for longer than one day if you believe it is consistent with your goals and risk tolerance. For any holding period other than a day, your return may be higher or lower than the Daily Target.

Why is SQQQ down so much?

The SQQQ ETF

Holding the fund for periods longer than a day opens the door to the effects of beta slippage, which largely explains why the ETF has lost almost all its value over the past decade. The fund's high expense ratio of 0.95% adds to SQQQ's decline over long periods of time.

Are inverse ETFs worth it?

If you buy an inverse ETF and the market associated with your fund rises, you will lose money. If the fund is leveraged, you could experience dramatic losses. Market downturns and bear markets are entirely different than rising markets.

What ETF matches the Nasdaq?

Invesco (QQQ)

QQQ is the most popular Nasdaq ETF because it uses a full replication strategy, meaning this ETF includes every security in the Nasdaq Index rather than a representative sample. Invesco QQQ offers an annualized return of 9.5% since its inception in 1999.

Why buy an inverse ETF?

Inverse ETFs can track broad-market indexes, specific sectors or other types of benchmarks. The critical thing to remember is that these funds are an inverse bet against the actual direction of that benchmark. For example, if you believe the S&P 500 will fall in value, you profit by purchasing an inverse ETF.

Do inverse ETFs decay?

Inverse or leveraged ETFs typically try to track the daily performance of their target asset. So, holding this kind of asset over a long period of time could compound losses. And the higher the leverage of an inverse ETF, the greater the potential decay of value due to its structure.

Why are inverse ETFs bad for long term?

Inverse ETFs aren't intended for long-term bearish movements or for hedging your portfolio against longer-term downswings because of the disadvantage of daily rebalancing.

What are the cons of inverse ETF?

A big disadvantage of inverse ETFs

Volatility loss describes the effect of volatility on total returns. An investor can be directionally accurate in their assessment that the underlying security will decline in value but still lose money by investing in an inverse ETF.

What happens if you hold an inverse ETF overnight?

Inverse ETFs have a one-day holding period. If an investor wants to hold the inverse ETF for longer than one day, the inverse ETF must undergo an almost daily operation called rebalancing. Inverse ETFs can be used to hedge a portfolio against market declines.

Do all inverse ETFs go to zero?

Over the long-term, inverse ETFs with high levels of leverage, i.e., the funds that deliver three times the opposite returns, tend to converge to zero (Carver 2009 ).

Is it bad to invest in too many ETFs?

Too much diversification can dilute performance

Adding new ETFs to a portfolio that includes this Energy ETF would decrease its performance.

Why would anyone buy SQQQ?

Overall, SQQQ best serves as a very specific and small satellite holding in an aggressive investor's portfolio. It is probably best used as a countercyclical buy for those who are convinced large-cap stocks will suffer in the very near future.

Can 3x ETF go to zero?

Leveraged ETF prices tend to decay over time, and triple leverage will tend to decay at a faster rate than 2x leverage. As a result, they can tend toward zero.

How long should you hold an inverse ETF?

ProShares Short S&P 500 (SH) provides inverse exposure to large and midsize companies in the S&P 500. It had an expense ratio of 0.88% and about $1.93 billion in net assets as of Q4 2023. 4 The inverse ETF aims to provide a one-day trading bet and is not designed to be held for more than one day.