(RWM) ProShares Short Russell2000 - Ratings and Ratios

ProShares Short Russell2000 (RWM) is an inverse ETF designed to deliver daily returns that are opposite to the performance of the Russell 2000 Index, a benchmark that tracks approximately 2000 of the smallest publicly traded companies in the US, representing around 10% of the total market capitalization of the Russell 3000 Index. By investing in a range of financial instruments, the fund aims to achieve its objective, making it a tool for investors looking to hedge against or speculate on declines in the small-cap segment of the US equity market.

The ETF is categorized under Trading--Inverse Equity, indicating its purpose is to provide inverse exposure to the daily performance of the Russell 2000 Index. As a non-diversified fund, RWM may have a higher concentration of assets in fewer securities, potentially increasing its volatility. Investors should be aware that the funds strategy is geared towards short-term trading rather than long-term investment, as its performance over longer periods may significantly deviate from the inverse of the Russell 2000 Index due to compounding effects.

Analyzing the , we observe that the last price of RWM is $19.61. The short-term moving averages (SMA20 and SMA50) are above the current price, indicating a recent downtrend in the ETFs price. However, the SMA200 is below the current price, suggesting a longer-term uptrend. The Average True Range (ATR) is 0.77, representing a 3.90% daily volatility, which is relatively moderate. The 52-week high and low are $23.57 and $16.94, respectively, showing the ETFs price range over the past year. Based on these indicators, a potential trading strategy could involve monitoring the ETFs price relative to its moving averages and ATR to gauge entry and exit points.

Considering the , the Assets Under Management (AUM) for RWM stand at $206.14M USD. This is a relatively modest size, which could impact liquidity and potentially result in wider bid-ask spreads. However, it is sufficient to indicate a dedicated investor base.

Forecasting the performance of RWM involves analyzing both the technical and fundamental data. If the Russell 2000 Index is expected to decline, RWM could potentially rise, given its inverse nature. Using the SMA20 and SMA50 as indicators, if the ETFs price moves above these averages, it could signal a potential buying opportunity, anticipating further upside. Conversely, a drop below these averages might indicate a selling opportunity. Additionally, monitoring the ATR for changes in volatility can help in adjusting the position sizes or stop-loss levels. With the current AUM and the technical indicators, a cautious bullish outlook on RWM could be justified if the Russell 2000 Index is anticipated to decline. However, investors should remain vigilant and adjust their strategies according to market conditions.