How do I short the NASDAQ?
Hi My question is if you were thinking of a correction in the US Tech Stocks over the next quarter what type of instrument would you invest in to benefit from any such downtown? Regards Peter W.
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Answer
Hi Peter,
We would consider the $US540m ProShares Short QQQ ETF which seeks to deliver investment returns that are inverse to the NASDAQ on a day to day basis i.e. it rallies when the NASDAQ falls.
NB This is a $US ETF hence there is a currency exposure to also be considered.
If you are looking for an ASX listed option, ETF Securities do have a geared short exposure on the NASDAQ (2-2.75x) however it is a smaller fund and importantly, it is leveraged and is better suited as a short term trading vehicle. It trades under code SNAS. It is currency hedged.
