ProShares Short QQQ (PSQ)

Profile

ProShares Short QQQ is an exchange-traded fund (ETF) designed to deliver daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the NASDAQ-100 Index. This index tracks the 100 largest non-financial companies listed on the NASDAQ, primarily large-cap technology and growth-oriented firms. Launched on June 19, 2006, the fund employs derivatives such as swaps and futures contracts with major financial institutions, alongside Treasury bills for collateral, to achieve its inverse exposure. With a net expense ratio of 0.95%, it maintains significant assets under management, around $500-700 million, and quarterly distributions. ProShares Short QQQ serves as a tactical tool in the financial markets, enabling investors to hedge against declines in the NASDAQ-100 or express bearish views on this benchmark sector for a single trading day, with daily resets that may lead to return erosion over longer periods in volatile conditions.