(UDOW) ProShares UltraPro Dow30 - Overview
ETF Category: Trading--Leveraged Equity | Exchange: NYSE ARCA (USA) | Market Cap: 817m USD | Total Return: 44.2% in 12m
TER: 0.95%
Avg Turnover: 180M
Warnings
No concerns identified
Tailwinds
No distinct edge detected
ProShares UltraPro Dow30 (UDOW) is a leveraged exchange-traded fund designed to deliver three times the daily performance of the Dow Jones Industrial Average. The fund achieves this objective by investing in a combination of equity securities and financial derivatives, such as swap agreements and futures contracts. Unlike traditional index funds, UDOW is non-diversified and focuses on high-conviction exposure to the 30 blue-chip companies that comprise the underlying index.
The funds business model relies on daily rebalancing to maintain its 300% leverage target, which makes it sensitive to the effects of compounding and volatility decay over extended periods. The Dow Jones Industrial Average itself is a price-weighted index, meaning constituent weightings are determined by share price rather than total market capitalization. For a deeper look at how these dynamics affect long-term returns, examine the data available on ValueRay. This fund is primarily utilized as a tactical tool for short-term trading rather than a core buy-and-hold investment.
- Price-weighted performance of thirty blue-chip stocks drives daily fund NAV
- Compounding interest and daily rebalancing cause long-term performance decay
- Federal Reserve interest rate shifts impact Dow Jones industrial valuations
- High volatility in equity markets increases the risk of significant capital loss
- Cost of financing leveraged swaps reduces net returns during sideways markets
Over the past week, the price has changed by -0.51%, over one month by +5.76%, over three months by -2.97% and over the past year by +44.23%.
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