SQQQ - ProShares UltraPro Short QQQ

[Dr PennyStock]

SQQQ - ProShares UltraPro Short QQQ ETF:  Established in February 2010 by ProShares, the UltraPro Short QQQ (SQQQ) is an inverse-leveraged exchange-traded fund (ETF) that tracks the Nasdaq-100 Index. The Nasdaq 100 is composed of the largest companies, both domestic and international, listed on the Nasdaq stock market, prioritized by total market capitalization, but excluding financial institutions.

The inverse-leveraged strategy for SQQQ means it attempts to reproduce a daily investment result that is roughly opposite the daily performance of its underlying index, and then multiply those results by a certain factor. The stated objective of SQQQ is to TRIPLE the opposite results of the Nasdaq-100.

This means investors in SQQQ are preparing for the greater nonfinancial stock market to struggle. Since the Nasdaq-100 tends to be heavily weighted toward technology, telecommunications, and health care stocks, the SQQQ should tend to perform well when these sectors perform poorly.

All inversely leveraged funds are made up of financial derivatives, and sometimes even derivatives of derivatives. To achieve the opposite of a specific asset, the fund managers have to trade in short positions and swaps, which essentially are bets the underlying security or investment performs poorly.

Daily chart

Weekly chart