An ETF is a pooled investment instrument that provides diversified exposure to a certain market segment. ETF shares are purchased by investors, and the money is used to make investments with a specified purpose in mind.
Our guide will teach you how to invest in any ETFs that you believe would be ideal for your portfolio.
Quick ProShares Ultra QQQ ETF History
Ultra QQQ ProShares (NASDAQ: QLD). QLD provides 2x leveraged exposure to a modified market-cap-weighted index of 100 key non-financial stocks traded on the NASDAQ. QLD’s future is closely related to the technology industry, making it a poor barometer for the larger-cap market in the United States.
An investor in this fund especially can potentially lose the whole principal value of the shares in a short amount of time. The Fund employs leverage and is hence riskier than comparable benchmarked funds that do not employ leverage. Investors in the fund should actively manage and monitor their investments on a daily basis, if possible.
QLD’s 52-week low point was $32.31 a share, and its 52-week high point equaled $67.45. ProShares Ultra QQQ (Symbol: QLD) recently this year experienced a $303.0 million dollar inflow and a 7% rise in outstanding units week over week.
This product, like TQQQ, monitors the NASDAQ-100 Index but provides double the daily returns with the same cost ratio. It has $4 billion in AUM and 1.6 million in average daily volume.
This ETF previously closed at $64.75 and has a market capitalization of $2.4 billion. The ProShares Ultra QQQ ETF was trading at $24.9075 on March 11th, 2020, when the World Health Organization declared Coronavirus (COVID-19) to be pandemic. QLD stock has risen since then, and it is currently worth $65.19.
The Good and the Bad of ProShares Ultra QQQ ETF
Owning stock or shares in a company provides a number of advantages. Here are some of the advantages and disadvantages of purchasing the ProShares Ultra QQQ ETF.
Pros of Owning ProShares Ultra QQQ ETF
- The fund is significantly more liquid than other funds of its size, with an average daily volume of over 924,174 transactions.
- This ETF is best suited as a very focused and modest satellite position to help generate large returns.
- ProShares Ultra QQQ ETF provides liquid, low-cost exposure to a technology-heavy array of large-cap, enterprises.
Cons of Owning ProShares Ultra QQQ ETF
- Since this portfolio is primarily concentrated on technology firms, it may be more risky. Technology stocks are notorious for their volatility, which is why they are riskier than other types of equities.
- The most significant downside of this fund is that it does not offer as much diversity as many other popular ETFs.
- ProShares Ultra QQQ ETF historically has consistently dropped whenever the S&P 500 is down.
Steps to Buy ProShares Ultra QQQ ETF
To purchase an exchange traded fund, you must first choose a brokerage, open a trading account, look up the ticker symbol, and then start buying shares.
Step 1: Select the Brokerage
QQQ shares can be acquired using any online brokerage account. WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, and Robinhood are among the most popular brokerages providing access to the US stock market.
Step 2: Open the Trading Account & Deposit Funds
To purchase an ETF, you must first create a trading account. A full-service account provides you with access with many tools that will assist you. You should evaluate each broker’s features and platforms. If you’re a beginner trader, it’s a good idea to deal with a broker who provides a number of instructional materials.
Step 3: Search for the ProShares Ultra QQQ ETF Ticker Symbol (QLD)
You must enter the ticker symbol for the ETF you wish to purchase. ProShares Ultra QQQ is a stock that trades on the New York Stock Exchange (NYSE) with the ticker symbol “QLD”.
Step 4: Purchase ProShares Ultra QQQ ETF
At the bottom of each page, brokers will have a “deal ticket” where you may place your order. On the broker’s order form, you will input the symbol and the quantity of shares you desire to acquire. With a market order, you can buy as many shares as you like, or you may use a limit order to delay the purchase until the stock hits a certain price.
Should You Buy ProShares Ultra QQQ ETF?
If given enough time, stock values tend to grow, and the tech-heavy Nasdaq has risen especially quickly. The popularity of leveraged ETFs has been growing significantly in the midst of a thriving ETF sector and exploding markets. To achieve their goals, these funds utilize a variety of investing techniques, including the utilization of swaps, futures contracts, and other derivative instruments.
Investors can benefit from bigger returns in a shorter period of time due to the compounding impact. The shares of ProShares Ultra QQQ were divided on Tuesday, May 25th, 2021. The newly issued shares were due to stockholders on Monday, May 24th, 2021, after the closing bell.
This ETF has been going upwards in recent months, so it may potentially be a good investment. If you would like to learn about investing in ETFs then you should consider contacting a financial advisor.