ProShares UltraShort Consumer Goods (SZK)

Overview

ProShares UltraShort Consumer Goods (SZK) 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 Goods Index. It provides leveraged inverse exposure to U.S. consumer goods companies.

Reputation and Reliability

ProShares is a well-known issuer of leveraged and inverse ETFs, recognized for its experience in providing sophisticated investment products.

Management Expertise

ProShares has a dedicated management team with expertise in structuring and managing leveraged and inverse ETFs.

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 Goods Index.

Investment Approach and Strategy

Strategy: The ETF aims to deliver two times the inverse of the daily performance of the Dow Jones U.S. Consumer Goods Index using derivatives.

Composition The ETF primarily uses financial instruments such as swaps and futures contracts to achieve its leveraged inverse objective.

Market Share: SZK's market share is small given its niche focus and leveraged inverse strategy.

Total Net Assets (AUM): 7.58

Key Competitors

• No direct competitors with the same leverage and inverse exposure to the specific consumer goods index. Closest competitors are broader market inverse funds.
• SH
• PSQ

Competitive Landscape

The competitive landscape is limited due to the specific leveraged inverse focus of SZK. Competitors are other broad market inverse funds. SZK's advantage is its sector-specific focus, but its disadvantage is its leveraged inverse nature, which can lead to significant losses.

Historical Performance: Historical performance is highly dependent on the performance of the Dow Jones U.S. Consumer Goods Index. Due to the leverage and inverse exposure, performance can be volatile and diverge significantly from the index over longer periods.

Benchmark Comparison: The ETF's performance should be compared to two times the inverse of the daily performance of the Dow Jones U.S. Consumer Goods Index.

Expense Ratio: 0.95

Average Trading Volume

SZK has a low average trading volume of around 13,868 shares, indicating relatively low liquidity.

Bid-Ask Spread

The bid-ask spread for SZK can be wider than more liquid ETFs due to lower trading volume.

Market Environment Factors

Economic indicators such as consumer spending, inflation, and interest rates significantly impact SZK's performance, as they directly affect the consumer goods sector.

Growth Trajectory

The ETF's growth trajectory depends on investor demand for leveraged inverse exposure to the consumer goods sector. Changes in consumer sentiment and market volatility can influence this demand.

Competitive Edge

SZK's competitive edge lies in its unique offering of leveraged inverse exposure to the consumer goods sector. This allows investors to express bearish views or hedge against potential downturns in the sector. However, the leveraged nature of the ETF makes it suitable only for sophisticated investors with a high-risk tolerance. Its specificity provides more granular control compared to broader market inverse ETFs, appealing to those with strong sector-specific convictions.

Volatility

SZK is highly volatile due to its leveraged inverse strategy, making it susceptible to significant fluctuations in value.

Market Risk

The ETF is exposed to the risk of the consumer goods sector, as well as the risks associated with leveraged and inverse investing.

Ideal Investor Profile

The ideal investor for SZK is a sophisticated, short-term trader with a high-risk tolerance who understands the complexities of leveraged and inverse ETFs.

Market Risk

SZK is best suited for active traders who use it for short-term tactical positions and not for long-term investment.

ProShares UltraShort Consumer Goods (SZK) is a leveraged inverse ETF designed for sophisticated investors seeking short-term exposure to the inverse performance of the consumer goods sector. It uses derivatives to achieve two times the inverse of the daily performance of the Dow Jones U.S. Consumer Goods Index. Due to its leveraged nature, it's highly volatile and not suitable for long-term investment strategies. Investors should carefully consider the risks associated with leveraged inverse ETFs before investing.

Data Sources:

• ProShares official website
• Yahoo Finance
• ETFdb.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in leveraged and inverse ETFs involves significant risks.