Underlying Index Performance: HQD.TO's price strongly mirrors the inverse performance and leverage of its underlying index, the Nasdaq 100. Significant daily movements in the Nasdaq 100, either positive or negative, will be amplified inversely and proportionally in HQD.TO's price.

Leverage Factor: HQD.TO employs leverage (2x). This magnifies both gains and losses based on the Nasdaq 100's movements. A higher leverage ratio increases price volatility and amplifies the effect of daily market fluctuations.

Interest Rates: The cost of maintaining a leveraged position is tied to interest rates. Higher interest rates increase borrowing costs, potentially reducing HQD.TO's returns and affecting its price negatively. The opposite is also true.

Management Fees & Expenses: The fund's management expense ratio (MER) and other operational costs are deducted from its assets. These fees reduce the fund's net asset value (NAV), slightly impacting its price over time.

Supply and Demand: Market demand for HQD.TO shares, relative to the available supply, influences its price. High demand can drive the price above its NAV, while low demand can push it below.

Market Sentiment: Overall market sentiment, particularly regarding technology stocks and the Nasdaq 100, plays a key role. Negative sentiment toward these areas can increase demand for inverse ETFs like HQD.TO, driving up its price.

Tracking Error: Imperfect tracking of the underlying index's inverse performance can occur due to various factors such as transaction costs and rebalancing. Tracking error can cause divergence between HQD.TO's price and the expected inverse return.

Volatility of the Underlying Index: Higher volatility in the Nasdaq 100 leads to increased price fluctuations in HQD.TO. This amplifies both potential gains and potential losses, increasing the risk profile.