4 min read
By Beqa Bumbeishvili, ETF Insider
Exchange-Traded Funds (ETFs) have reshaped the investment landscape, presenting investors with diversified exposure to a wide array of sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: TQQQ (ProShares UltraPro QQQ) and SQQQ (ProShares UltraPro Short QQQ). Our analysis will cover essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.
TQQQ VS SQQQ: Overview
TQQQ and SQQQ are ETFs that provide contrasting strategies within the realm of the Nasdaq-100 Index. While TQQQ is designed to deliver triple the daily returns of the index, SQQQ aims to provide the inverse (-3x) daily returns. This divergence in investment objectives leads to distinct risk and reward profiles, which we will delve into further.
TQQQ VS SQQQ: Sectors and Top Holdings
TQQQ focuses on providing amplified exposure to the information technology sector and other sectors included in the Nasdaq-100 Index. The ETF's top holdings include technology giants like Apple, Microsoft, and Amazon. On the other hand, SQQQ seeks to capitalize on the inverse performance of the same index, making it a tool for investors who anticipate downturns in the technology sector.
TQQQ overlap TQQQ VS SQQQ: A Comprehensive Comparison of ETFs
TQQQ VS SQQQ: Capitalization and Investment Strategy
TQQQ boasts a substantial asset under management (AUM), reflecting its popularity among investors looking to magnify their exposure to the Nasdaq-100. Its investment strategy involves utilizing derivatives to achieve triple the daily returns of the index. SQQQ's strategy, on the other hand, involves seeking daily results that are -3 times the performance of the Nasdaq-100 Index. These divergent strategies result in significant differences in returns and risk.
TQQQ VS SQQQ: Tracking Methods and Exposure
TQQQ employs a strategy that aims to deliver three times the daily returns of the Nasdaq-100 Index using swaps and other derivatives. Conversely, SQQQ seeks to deliver -3 times the daily returns of the same index, making it a potential hedge during market declines. Understanding the tracking methods and exposure of these ETFs is crucial for investors to align their investment goals with the appropriate ETF.
Conclusion
TQQQ and SQQQ stand as distinctive ETFs, each catering to specific investment strategies within the Nasdaq-100 realm. For investors seeking a deeper understanding of their holdings, correlations, overlaps, and other valuable insights, ETF Insider serves as an invaluable tool. Through its user-friendly app, it equips investors with comprehensive information about these and other financial instruments.
Disclaimer: This article does not provide any investment advisory services.
Sources:
TQQQ ETF issuer
TQQQ ETF official page
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