(UGE) ProShares Ultra Consumer - Overview

ProShares Ultra Consumer Goods (NYSE ARCA: UGE) seeks to deliver **2× daily leveraged exposure** to the S&P 500 Consumer Staples Index, which tracks large-cap U.S. companies that produce essential goods such as food, beverages, household products, and personal care items. The ETF is classified as a non-diversified, leveraged equity fund, meaning at least 80 % of its assets must be invested in index components or economically equivalent instruments.

Key quantitative details (as of the most recent filing): the fund’s expense ratio is **0.95 %**, the 30-day SEC-based implied volatility is roughly **45 %**, and the top five holdings-typically Procter & Gamble, Coca-Cola, PepsiCo, Colgate-Palmolive, and Kimberly-Clark-collectively represent about **30 %** of assets. Because of the 2× leverage, a 1 % move in the underlying index translates to an approximate 2 % change in UGE’s price, magnifying both upside and downside.

Sector-level drivers that materially affect performance include: (1) **inflation pressure** on input costs, which can compress margins for manufacturers; (2) **real-wage growth**, influencing consumer ability to maintain spending on staple items; and (3) **monetary-policy stance**, as higher rates tend to increase financing costs for corporate balance sheets and can depress equity valuations, even in defensive sectors. Historical data suggest consumer staples have a lower beta (~0.6) relative to the broader market, but the leveraged structure of UGE erodes that defensive advantage on a daily basis.

For a deeper, data-driven assessment of UGE’s risk-adjusted return profile, you may find the analytics on ValueRay useful.