AXS Investments acquired 213,447 shares of ProShares UltraPro Short QQQ for an estimated $3.25 million, representing 1.4% of AUM. The position is outside the fund’s top five holdings. The ETF aims to deliver three times the inverse daily performance of the Nasdaq-100 Index, utilizing financial instruments for hedging in volatile markets.

The SQQQ ETF has a dividend yield of 0.65% and is priced 76.6% below its 52-week high. It holds financial instruments instead of stock positions, seeking to triple the inverse performance of the Nasdaq-100. The ETF serves as a hedge against potential losses in the tech sector.

This investment in SQQQ is a bearish and leveraged strategy, counter to AXS Investment’s tech-heavy holdings. The ETF aims to soften potential losses if the tech sector declines sharply. It’s a sophisticated risk management tool that could undermine gains from the fund’s largest positions.

ProShares UltraPro Short QQQ is a unique ETF that moves in the opposite direction of the Nasdaq-100 Index, with triple the inverse performance. It’s a small but strategic hedge in AXS Investment’s portfolio. Investors can monitor the ETF’s performance and consider incorporating it into a diversified portfolio for risk management.

Read more at Nasdaq: AXS Investments Loads Up on 213,000 SQQQ Shares