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Retail Traders Flocked to Levered ETF Betting on More Tech Pain

  • Individual investors piled $76.6m into ETF during Monday rout
  • SQQQ delivers 3x the inverse of Nasdaq 100’s performance

Individual investors pushed cash into a levered exchange-traded fund betting against the tech-heavy Nasdaq 100 as they looked to profit from the market’s spiral. 

Retail traders bought $76.6 million of the ProShares UltraPro Short QQQ ETF (ticker SQQQ) -- an ETF that delivers results that are three times the inverse performance of the gauge -- amid Monday’s rout, according to data compiled by JPMorgan Chase & Co. strategist Peng Cheng. That reversal comes after months of betting that crowd favorites like the Invesco QQQ Trust Series 1 (ticker QQQ) and Nvidia Corp. would continue to rise.