That's the 'three times the inverse of daily performance' objective at work. For example, as you can see on their charts, on January 23 the spread between the daily high and low price of the QQQ was almost 2.6% on the SQQQ it was almost 7.9%. Investors must also be prepared for wider spreads on the SQQQ or any other leveraged 3X ETF. That means a daily loss or gain may not be what the fund buyer thinks it should be relative to the Nasdaq 100's performance. While that part makes sense, it also causes drift from the underlying index, which doesn't rebalance as regularly.
As a daily leveraged fun, SQQQ rebalances its holdings after each market close to keep aligned with its benchmark. Here's what that means: Leveraged funds must rebalance at intervals determined by the fund objective. Daily Rebalancing May Result In Performance Driftīecause a leveraged instrument like SQQQ uses derivatives to achieve its objective, there will be some beta slippage, the term for multi-day tracking inefficiencies. Just because the broader Nasdaq is turning south, the SQQQ is not guaranteed to rise. (Nasdaq: UBET), the leading online live event and wagering company, said today that its customers wagered a record 1. Your timing has to be on point to profit from anything designed as a trade. Customers wager record 1.4 million on race day card sign ups rise 185 Woodland Hills, CA,, Inc. ProShares is saying that the SQQQ ETF is a vehicle for timing the market.
