Several inverse ETFs are available that gain when the Nasdaq 100 index falls. The ProShares Short QQQ (PSQ<\/a>) returns the inverse of the index on a one-to-one basis. The ProShares UltraShort QQQ (QID<\/a>) is a 2x inverse ETF, and the ProShares UltraPro UltraShort QQQ (SQQQ) is a 3x inverse ETF. The more leverage you have (i.e., 2x or 3x), the more the price movements will be amplified. Leveraged ETFs, however, decay due to their composition. As a result, the more leverage an ETF has, the shorter the holding period you should keep.<\/p>"
}
}
,
{
"@type": "Question",
"name": "What Is SQQQ Best Used for?",
"acceptedAnswer": {
"@type": "Answer",
"text": " SQQQ is ideal for very short-term short bets against the Nasdaq 100 index. 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.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Can You Sell Short QQQ?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Yes. The QQQ, like other ETFs, resembles shares of stock in many ways. If your broker can locate QQQ shares for you to borrow, you can sell them short. Whether shorting a long ETF or going long, an inverse ETF is better is often up to the trader. For longer holding periods, an inverse ETF may behave in an unusual manner.<\/p>"
}
}
]
} ] }
]