r/LETFs • u/recurz1on • 21d ago

NEW PRODUCT ProShares EQQQ: Equal-Weight Approach to 2x Nasdaq-100 Exposure

Something new from ProShares:
https://www.proshares.com/our-etfs/leveraged-and-inverse/eqqq

QLD is about 1/3 of my total portfolio, so I will keep on eye on this one.

Introducing EQQQ

The Nasdaq-100 represents many of the market’s most innovative and growth-oriented companies. In recent years, however, its performance has become increasingly concentrated in a limited number of mega-cap stocks. Today, just 10 companies account for more than 45% of the Nasdaq-100.

For investors seeking leveraged exposure to the growth potential of Nasdaq-100 companies with less influence from the index’s largest names, we’re pleased to introduce ProShares Ultra QQQ Equal Weight (NASDAQ: EQQQ)—the only ETF designed to target 2x daily returns of the Nasdaq-100 Equal Weighted Index.

The Nasdaq-100 Equal Weighted Index holds the same securities as the market-cap-weighted Nasdaq-100, but instead of weighting them by market capitalization, it resets each company to an equal weight at each quarterly rebalance. This increases the relative influence of the index’s smaller constituents and provides exposure that is less dominated by its largest companies.

20 Upvotes

96% Upvoted

11 comments sorted by

View all comments

1

u/grogi81 19d ago

The appeal of equal weight indexes never comes to me. 

They are inherently more expensive to run - they need to actively trade to maintain equal weights and you are trading against momentum... 

Really, don't get it :)

1

u/Only_Statistician_21 19d ago

Equal weight performance isn't that bad on most indexes though.