How Does Sqqq Stock Work?

Maya Lin-Takahashi
Maya Lin-Takahashi
• • 7 min read

The Proshares Ultrapro Short Qqq (Sqqq) Is a 3X Leveraged Inverse Etf Inverse Etf an Inverse Exchange-Traded Fund Is an Exchange-Traded Fund (Etf), Traded on a...

How Does Sqqq Stock Work?

The ProShares UltraPro Short QQQ (SQQQ) is a 3x leveraged inverse ETF

inverse ETF
An inverse exchange-traded fund is an exchange-traded fund (ETF), traded on a public stock market, which is designed to perform as the inverse of whatever index or benchmark it is designed to track.
› wiki › Inverse_exchange-traded_fund
that tracks the Nasdaq 100, meaning it looks to return the exact results of the Nasdaq 100 index times three. ... The SQQQ is meant to be held intraday and is not a long-term investment, where expenses and decay will quickly eat into returns.

How does the SQQQ work?

SQQQ is an inverse leveraged ETF on the Nasdaq 100. It aims to deliver -3 times the return of the Nasdaq 100. For example, if the Nasdaq 100 grows by 1% today, SQQQ will have a -3% loss. Investors profit when the underlying index, the Nasdaq 100, goes down.

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Is there a fee for SQQQ?

Fees Overview

This funds expense ratio fees of 0.95% are lower than other similar funds. Other similar funds have an expense ratio fee of 1.30%.

Maya Lin-Takahashi

Maya Lin-Takahashi

Consumer Tech & Gadget Reviewer
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Maya is a hardware enthusiast who tests and reviews smart home devices, smartphones, wearables, and audio gear. She focuses on practical consumer value and build quality.