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 aims to profit from a decrease in the value of consumer goods stocks.

Reputation and Reliability

ProShares is a well-known issuer of leveraged and inverse ETFs, with a strong track record in providing these specialized products.

Management Expertise

ProShares has extensive experience in managing leveraged and inverse ETFs, requiring sophisticated risk management and trading strategies.

Goal

To deliver two times the inverse of the daily performance of the Dow Jones U.S. Consumer Goods Index.

Investment Approach and Strategy

Strategy: Tracks a multiple (2x) of the inverse of a specific sector index. It is rebalanced daily.

Composition Primarily holds derivatives like swap agreements to achieve its -2x exposure to the underlying index. It doesn't directly hold consumer goods stocks.

Market Share: Data Unavailable.

Total Net Assets (AUM): 11880000

Key Competitors

• FAZ
• BIS
• YANG

Competitive Landscape

The market for inverse and leveraged ETFs is competitive, with several issuers offering similar products across different sectors. SZK's advantage lies in its specific focus on consumer goods, while its disadvantage is its inherent risk and complexity compared to standard ETFs. Competitors offer exposure to different sectors or leverage levels.

Historical Performance: Historical performance is highly dependent on the daily movements of the Dow Jones U.S. Consumer Goods Index and is characterized by significant volatility. Data Unavailable.

Benchmark Comparison: Performance should be compared against -2x the daily performance of the Dow Jones U.S. Consumer Goods Index.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume is moderate and can vary, impacting the ease of buying or selling shares. Data Unavailable.

Bid-Ask Spread

The bid-ask spread can be relatively wide due to the ETF's leveraged nature and lower trading volume, adding to transaction costs.

Market Environment Factors

Economic indicators like consumer spending, inflation, and interest rates significantly impact the consumer goods sector and thus SZK. Negative outlooks for consumer spending benefit the ETF.

Growth Trajectory

The ETF's growth trajectory is inversely correlated with the performance of the consumer goods sector. No significant changes to strategy or holdings are expected unless the underlying index changes.

Competitive Edge

SZK offers a niche product for investors seeking short-term, leveraged inverse exposure to the consumer goods sector. Its advantage lies in its specific focus, providing a targeted tool for bearish bets on consumer goods. It doesn't have a traditional moat as it is based on an index. The primary differentiation is its leverage and inverse nature. This makes it attractive to sophisticated traders with a short-term outlook.

Volatility

High volatility is inherent due to the leveraged and inverse nature of the ETF. Daily rebalancing can lead to performance deviations over longer periods.

Market Risk

Significant market risk exists as the ETF is directly tied to the performance of the consumer goods sector. Unexpected positive performance in consumer goods will result in losses.

Ideal Investor Profile

Active traders with a short-term investment horizon and a strong understanding of leveraged and inverse products are the ideal investors. Those who believe the consumer goods sector is poised for a decline are best suited.

Market Risk

Best suited for active traders seeking short-term tactical positions. Not suitable for long-term investors due to its leveraged nature and daily rebalancing.

ProShares UltraShort Consumer Goods (SZK) offers leveraged inverse exposure to the Dow Jones U.S. Consumer Goods Index, making it a high-risk, short-term trading tool. It is designed for sophisticated investors who expect a decline in the consumer goods sector. Due to daily rebalancing and the leveraged nature of the ETF, it is unsuitable for long-term investments. Understanding the underlying index and the risks associated with leveraged and inverse ETFs is crucial before investing.

Data Sources:

• ProShares Website
• SEC Filings
• Bloomberg

Disclaimers:

This data is for informational purposes only and should not be considered investment advice. Investing in leveraged and inverse ETFs carries significant risk. Consult with a financial advisor before making any investment decisions.