(UWM) ProShares Ultra Russell2000 - Ratings and Ratios

The ProShares Ultra Russell2000 (UWM) is a leveraged ETF designed to provide amplified exposure to the performance of the Russell 2000 Index, which tracks the small-cap segment of the US equity market. By utilizing a combination of financial instruments, the fund aims to achieve daily returns that are consistent with its Daily Target, effectively doubling the returns of the underlying index.

The funds investment strategy involves obtaining leveraged exposure to at least 80% of its total assets in components of the Russell 2000 Index or in instruments with similar economic characteristics. This approach allows the fund to magnify the returns of the underlying index, making it a popular choice among traders seeking to capitalize on short-term market movements. As a non-diversified fund, UWM is heavily reliant on the performance of its underlying assets, which can result in higher volatility.

Analyzing the funds technical data, we can observe that the current price is $32.91, with a 20-day SMA of $30.44, indicating a recent upward trend. The 50-day SMA is $32.38, slightly below the current price, while the 200-day SMA is $40.32, significantly higher than the current price, suggesting a longer-term downtrend. The ATR of 2.05 represents a 6.24% average daily price movement, indicating relatively high volatility. Considering the 52-week high and low prices of $50.49 and $25.35, respectively, the fund is currently trading near the lower end of its recent range.

Fundamentally, the fund has an AUM of $299.19M USD, which is a relatively modest size compared to other ETFs. This could potentially impact liquidity and trading costs.

Based on the technical and fundamental data, a forecast for UWM can be constructed. Given the recent upward trend and the funds leveraged nature, it is likely that UWM will continue to be highly sensitive to movements in the Russell 2000 Index. If the index experiences a significant rally, UWM could potentially surge, driven by its leveraged exposure. However, if the index declines, UWMs losses could be amplified. As such, traders should closely monitor the indexs performance and be prepared for potential high volatility in UWM. A break above the 50-day SMA could signal further upside potential, while a decline below the 20-day SMA could indicate a reversal of the recent trend.