How to Short the NASDAQ

3 inverse ETFs to bet against the NASDAQ-100 and tech stocks — buy them like any stock

TL;DR

Buy PSQ (1x), QID (2x), or SQQQ (3x) on any brokerage. These inverse ETFs rise when the NASDAQ-100 falls. SQQQ is the most popular with the highest volume.

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Risk Warning

Inverse ETFs are high-risk instruments designed for short-term trading. The NASDAQ is heavily tech-weighted and can be extremely volatile. This is educational content, not investment advice.

NASDAQ Inverse ETFs Compared

Ticker	Name	Leverage	Expense	If NASDAQ drops 3%
PSQ	ProShares Short QQQ	1x	0.95%	+3%	Details →
QID	ProShares UltraShort QQQ	2x	0.95%	+6%	Details →
SQQQ	ProShares UltraPro Short QQQ	3x	0.95%	+9%	Details →

Why Short the NASDAQ?

The NASDAQ-100 is dominated by tech giants — Apple, Microsoft, NVIDIA, Amazon, Meta, Alphabet, and Tesla make up over 50% of the index. Traders short the NASDAQ when they expect:

Tech sector correction or bubble deflation
Rising interest rates (hurts growth/tech stocks disproportionately)
AI hype cycle reversal
Regulatory crackdowns on big tech
Hedging a tech-heavy portfolio

SQQQ: The Most Popular NASDAQ Short

SQQQ is by far the most traded inverse NASDAQ ETF, with daily volume often exceeding 100 million shares. It provides 3x inverse exposure — when the NASDAQ-100 drops 1%, SQQQ aims to rise 3%.

The tradeoff: 3x leverage means 3x the leverage decay. SQQQ loses value over time even in flat or choppy markets. It's a trading instrument, not an investment.

Also Consider: Sector-Specific Tech Shorts

If you want to short specific parts of the tech sector rather than the whole NASDAQ:

TECS (3x) — Shorts the technology sector specifically
SOXS (3x) — Shorts semiconductors (NVIDIA, AMD, Intel)
WEBS (3x) — Shorts internet companies

Frequently Asked Questions

How do you short the NASDAQ?

Buy an inverse NASDAQ ETF: PSQ (1x), QID (2x), or SQQQ (3x). These trade like regular stocks on any brokerage. When the NASDAQ-100 drops, these ETFs go up. No margin account needed.

What is the best ETF to short the NASDAQ?

SQQQ (3x) is the most popular for day trading with maximum leverage. PSQ (1x) is better for multi-day holds with less decay. QID (2x) is the middle ground.

Is SQQQ a good way to short the NASDAQ?

SQQQ provides 3x inverse exposure to the NASDAQ-100 and is the most traded inverse NASDAQ ETF. It's suitable for short-term trades (1-5 days) but loses value over time due to leverage decay. Not suitable for long-term holding.

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SQQQ

SQQQ: 3x Inverse NASDAQ ETF