Can someone knowledgeable please explain in simple terms on how the purchase of TQQQ impact Nasdaq?
My impression is, if I buy a share of QQQ, I am in essence buying small percentages of all the shares in Nasdaq index. TQQQ is different and it does some kind of derivatives that I do not understand or can replicate.
My question is, when I buy 1 share of TQQQ, am I pushing up the Nasdaq index, or TQQQ does not influence the index.
Moreover, when the index constituents change, does the TQQQ adapt those changes automatically. Are they selling everything at the end of the day and getting 100% cash for the night? If so, why don't we see a buying and selling impact on the index stocks at the start and end of the day?
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