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Leverage ETF-SQQQ-BBUS, page-5

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darrenrr

2,293 Posts.

237

04/11/24

07:31

Post #: 76442194
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Originally posted by jokerlee: ↑

Hi everyone.

I am not an expert in stock trading. However I would like to learn more about tools that allows me to short the Nasdaq that isn't too complicated with low fees.

Please comment on the following points .

1. From what i know ETFs are meant to be quite safe in general as in it's very unlikely that an ETF get wipe out unlike a small cap or a struggling company.

2. SQQQ have a 3x inverse exposure to the Nasdaq. On 12/2/2016 SQQQ was priced at 105USD and NASDAQ hit 4337. Could that mean when Nasdaq goes back down to 4337 then SQQQ will be around 105USD again? I know these ETF is meant to decay overtime but i don't understand what that really mean or what causes it. How much do you think SQQQ will be worth when the Nasdaq drop to 4337 again?

3. What causes the decay of these leveraged ETF?

4. If the ETF isn't Leveraged does it mean it wont decay? (take HACK BetaShares Global Cybersecurity ETF for example)

5. Is it smart to hold SQQQ for a long term? 1-2yrs maybe even 3yrs.

6. Any thoughts of BBUS. I know this one tracks the S&P500 and is around 2.5x leveraged? I have an account with Stake so buying SQQQ wont be a problem.

Thanks for your input

A.B

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?depends on dilution as well
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