1-Star ETFs Poised to Plunge: ProShares Short QQQ Shares?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ProShares Short QQQ Shares (NYS: PSQ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at ProShares Short QQQ and see what CAPS investors are saying about the ETF right now.

PSQ facts


December 2006

Total Net Assets

$229.1 million

Investment Approach

Seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the Nasdaq-100 Index. The index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.

Expense Ratio


1-Year / 3-Year / 5-Year Returns

(25.8%) / (20.3%) / (13.2%)


ProShares UltraShort QQQ
Direxion Daily Technology Bear 3X Shares
ProShares UltraShort Technology

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 45% of the 483 members who have rated ProShares Short QQQ believe the ETF will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star TerryHogan, tapped ProShares Short QQQ as a particularly untimely opportunity:

This is another ETF that has an expense limitation that ends at the end of Sept. 2012. Once the expense ratio goes up, underperformance will only increase. Plus, it matches the inverse of daily returns, so it will inevitably decline with any volatility over time.

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The article 1-Star ETFs Poised to Plunge: ProShares Short QQQ Shares? originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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