How do I short the NASDAQ?

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Question asked 10/07/2021

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.

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.

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ProShares Short QQQ (PSQ US) ETF

LAST UPDATED 08/07/2021 16:23

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