ProShares UltraShort Consumer Services (SCC)

Overview

ProShares UltraShort Consumer Services (SCC) seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Consumer Services Index. It provides leveraged inverse exposure to consumer services companies.

Reputation and Reliability

ProShares is a well-known issuer specializing in leveraged and inverse ETFs. They have a solid reputation for providing targeted exposure based on specific index performance.

Management Expertise

ProShares has a dedicated team with experience in managing leveraged and inverse ETFs. They understand the complexities of these types of instruments and implement strategies to track the specified benchmarks.

Goal

To seek daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Consumer Services Index.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged inverse strategy, using derivatives to achieve -2x the daily return of the underlying index.

Composition Primarily invests in derivatives, such as swaps, futures contracts, and options, to achieve its leveraged inverse exposure. It does not directly hold stocks within the Dow Jones U.S. Consumer Services Index.

Market Share: SCC has a moderate market share among leveraged/inverse consumer discretionary ETFs, but is highly volatile.

Total Net Assets (AUM): 16900000

Key Competitors

• ProShares Ultra Consumer Discretionary (UCD)
• MicroSectors U.S. Big Oil Index 3X Leveraged ETN (NRGU)
• Direxion Daily Retail Bull 3X Shares (RETL)

Competitive Landscape

The leveraged/inverse ETF market is competitive, with several providers offering similar products across different sectors. SCC's advantage lies in its specific focus on consumer services. A disadvantage is the high degree of volatility and complexity, making it unsuitable for many investors.

Historical Performance: Historical performance can vary significantly due to the leveraged inverse nature of the ETF. Data will vary by period.

Benchmark Comparison: The ETF is designed to provide -2x the *daily* performance of the Dow Jones U.S. Consumer Services Index, so it's not appropriate to benchmark against the index's long-term performance. Deviations are expected over longer periods.

Expense Ratio: 0.95

Average Trading Volume

Average trading volume fluctuates but generally is moderate allowing relatively easy entry and exit from positions.

Bid-Ask Spread

The bid-ask spread can be volatile due to the leveraged nature and moderate volume and depends on intraday conditions.

Market Environment Factors

Economic indicators, consumer confidence, and overall market sentiment strongly influence the performance of consumer services companies and, consequently, SCC's returns.

Growth Trajectory

Growth trends are unpredictable due to the leveraged inverse strategy; significant changes in holdings or strategy are unlikely since its mandate is to track -2x daily performance.

Competitive Edge

SCC's competitive advantage rests on its ability to deliver leveraged inverse exposure to the consumer services sector, filling a specific niche for investors seeking short-term hedging or speculative opportunities. It benefits from the brand recognition of ProShares as a provider of specialized ETFs. The leveraged inverse approach can amplify returns (or losses) relative to non-leveraged ETFs in this sector, appealing to active traders. However, this strategy is very risky.

Volatility

SCC exhibits high volatility due to its leveraged nature; daily fluctuations can be significant.

Market Risk

It is subject to the risks associated with the consumer services sector and the effects of leverage. Compounding can significantly affect returns over longer periods, often deviating significantly from -2x the index's cumulative return.

Ideal Investor Profile

Ideal for sophisticated investors with a high-risk tolerance seeking short-term hedging or speculative opportunities in the consumer services sector.

Market Risk

Best suited for active traders with a deep understanding of leveraged inverse ETFs; inappropriate for long-term investors or passive index followers.

ProShares UltraShort Consumer Services (SCC) is a leveraged inverse ETF that seeks to deliver -2x the daily performance of the Dow Jones U.S. Consumer Services Index. It is designed for short-term trading and hedging strategies, appealing to sophisticated investors who understand the risks associated with leveraged and inverse products. Due to compounding effects, SCC is unsuitable for long-term investments as performance can deviate significantly from the underlying index's inverse return over extended periods. SCC has moderate AUM and is very volatile.

Data Sources:

• ProShares website
• ETF.com
• Morningstar
• FactSet

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Leveraged and inverse ETFs are high-risk investments and are not suitable for all investors. Past performance is not indicative of future results.