Row 34767

Row ID: 34767 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 34767 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Hello everyone!

I saw that some bull and bear ETF pairs like QQQ and PSQ have borrowing costs below the risk free rate. Does this mean it is possible to short both at the same time and with daily rebalancing then just generate a risk free profit on the cash proceeds from the short sale?

Or even more extrem. Short PSQ and simultaneously short Nasdaq Futures instead of QQQ to get even more leverage. Quickly estimating in my head, the returns on the collateral in this scenario could easily be about 20% or more p.A. with barely any drawdowns.

For what (practical) reasons this doesn't work? Or would it actually?

FieldValue
text Hello everyone! I saw that some bull and bear ETF pairs like QQQ and PSQ have borrowing costs below the risk free rate. Does this mean it is possible to short both at the same time and with daily rebalancing then just generate a risk free profit on the cash proceeds from the short sale? Or even more extrem. Short PSQ and simultaneously short Nasdaq Futures instead of QQQ to get even more leverage. Quickly estimating in my head, the returns on the collateral in this scenario could easily be ab…
label r/investing
dataType post
communityName r/investing
datetime 2024-05-21
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url_encoded Z0FBQUFBQm5Lak9YbmN2VVFqR2N2N1g0dU9udGJzY2pFRDBaRXRab0tPNGJ0MnB2OHRZeWsyX1FfYnpIeVVNVk0wN3Vvb1JlTFVhQnhxay1HTlVoYzIwbXVROURjblFfQVByMVEtX2k3TmhxRkprb05mdmlOREhxUl9EVVpSc0s0YmYxWS02RVZOaTVaRnlaWV92bVJxSjlXTlJ1aGp1Y2VjRVRyaGswYk0xZW96QXk3WG4wX2NhYzVwZ0lsbHBLbFlFX2lZbUpIWDk3Yjh3ZF83X3QxVjJiZFBybmVxSjJSdz09

Raw Record

{
  "text": "Hello everyone!\n\nI saw that some bull and bear ETF pairs like QQQ and PSQ have borrowing costs below the risk free rate. Does this mean it is possible to short both at the same time and with daily rebalancing then just generate a risk free profit on the cash proceeds from the short sale? \n\nOr even more extrem. Short PSQ and simultaneously short Nasdaq Futures instead of QQQ to get even more leverage. Quickly estimating in my head, the returns on the collateral in this scenario could easily be about 20% or more p.A. with barely any drawdowns.\n\nFor what (practical) reasons this doesn't work? Or would it actually?",
  "label": "r/investing",
  "dataType": "post",
  "communityName": "r/investing",
  "datetime": "2024-05-21",
  "username_encoded": "Z0FBQUFBQm5Lak1JUVRMemdnRlliMTBRTjJMMVo1SkZKU3lackFvMzFURnM4WkYwVXpGUkMtbEpadDBnR3NCaW5CUlZTZ3ZZUFd4cEtGOF84eWJDb3Y3TEtJYnV0bGdiSWhtdjNfUENYNWNVNGV0dmFSdllhaE09",
  "url_encoded": "Z0FBQUFBQm5Lak9YbmN2VVFqR2N2N1g0dU9udGJzY2pFRDBaRXRab0tPNGJ0MnB2OHRZeWsyX1FfYnpIeVVNVk0wN3Vvb1JlTFVhQnhxay1HTlVoYzIwbXVROURjblFfQVByMVEtX2k3TmhxRkprb05mdmlOREhxUl9EVVpSc0s0YmYxWS02RVZOaTVaRnlaWV92bVJxSjlXTlJ1aGp1Y2VjRVRyaGswYk0xZW96QXk3WG4wX2NhYzVwZ0lsbHBLbFlFX2lZbUpIWDk3Yjh3ZF83X3QxVjJiZFBybmVxSjJSdz09"
}
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