WEB Inverse ETFs Spike as Nasdaq Enters Correction

Key Differences among Funds

Amidst the recent downturn and correction territory of the Nasdaq Composite Index, inverse ETFs tracking the index have surged in popularity. Here's a breakdown of some key differences among these ETFs:

ProShares UltraPro Short QQQ (SQQQ): This ETF provides triple the inverse daily performance of the Nasdaq 100 Index. It has a high expense ratio of 0.95% and is suitable for experienced traders seeking aggressive short-term exposure.

Direxion Daily Semiconductor Bear 3X Shares (SOXS): This ETF offers triple the inverse daily performance of the PHLX Semiconductor Sector Index. It has a higher expense ratio of 1.06% and is suited for traders targeting exposure to the semiconductor sector.

ProShares UltraShort QQQ (QID): This ETF provides double the inverse daily performance of the Nasdaq 100 Index. It has a relatively lower expense ratio of 0.85% and is less volatile than SQQQ, making it suitable for investors seeking moderate exposure.

VelocityShares Daily Inverse Nasdaq 100 ETN (XIV): This ETN provides -1x inverse daily performance of the Nasdaq 100 Index. It has a low expense ratio of 0.75% and offers leveraged exposure suitable for seasoned investors.

Note: Inverse ETFs are complex financial instruments that involve high risk. It's crucial to understand the specific objectives and risks associated with each fund before investing.