If one is looking to hedge his exposure to the Nasdaq Composite, does anyone have an opinion of what would be best way to this? Think of a starting portfolio size of about 50k My considerations: - Short the QQQ ETF: problem here however is that it only covers the Nasdaq-100 which is relatively bias towards large cap growth stocks and mostly non-financials. If you see a outperformance in the small caps (which are probably a small part of the overall comp anyways) you wouldn’t be capturing this - Long the Inverse QQQ ETF (PSQ): similar argument above - Short the ONEQ ETF (Fidelity managed fund for the full Nasdaq comp): looks like a decent product but the liquidity is poor, wide bid/ask spreads so difficult to scale your risk exposure without taking a price hit - Short the NL futures contract (Nasdaq-comp minis): problem here is 1 contract is about 98k and that is massive exposure to start with. This is probably the best option but you really need to build up the size - Options on Nasdaq 100 via NDX: would have to be buy and hold, difficult to scale risk exposure and would be costly as there are so many moving parts (greeks, IV etc). Again its Nasdaq-100 so you might as well go with QQQ as its simpler Anyone have any insights? Im a first time poster but looking to contribute to this forum which I have tracked for some time. Also with the ETFs, just generally speaking is it better to short the ETF or go long the inverse? Further as one becomes of a substantial size I would assume futures is the best way to go to hedge the systematic risk.