ProShares Ultra Consumer Goods (UGE)

Overview

ProShares Ultra Consumer Goods (UGE) is a leveraged ETF seeking daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Dow Jones U.S. Consumer Goods Index. It provides magnified exposure to consumer goods companies.

Reputation and Reliability

ProShares is a well-known issuer specializing in leveraged and inverse ETFs, generally considered reliable.

Management Expertise

ProShares has extensive experience in managing leveraged ETFs.

Goal

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

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, aiming for 2x the daily return of its underlying index.

Composition The ETF holds derivatives and other financial instruments to achieve its leveraged exposure to consumer goods stocks.

Market Share: Data is unavailable to calculate the precise market share of UGE within the broader leveraged consumer goods ETF segment.

Total Net Assets (AUM): 13460000

Key Competitors

• Consumer Discretionary Select Sector SPDR Fund (XLY)
• Vanguard Consumer Staples ETF (VDC)
• iShares U.S. Consumer Goods ETF (IYK)

Competitive Landscape

The competitive landscape includes broad consumer sector ETFs like XLY and VDC. UGE distinguishes itself with its leveraged approach. This makes it suitable for short-term tactical plays, but riskier for long-term investment compared to non-leveraged competitors.

Historical Performance: Historical performance data is not readily available in a numerical array format without live data access.

Benchmark Comparison: Comparison requires access to historical performance data of both UGE and the Dow Jones U.S. Consumer Goods Index.

Expense Ratio: 0.95

Average Trading Volume

Average trading volume is moderate, impacting ease of entry and exit.

Bid-Ask Spread

Bid-ask spread can vary depending on market conditions and demand.

Market Environment Factors

Consumer spending, economic growth, interest rates, and consumer confidence influence the performance of UGE.

Growth Trajectory

Growth trajectory depends on the performance of the consumer goods sector and the effectiveness of the leveraged strategy.

Competitive Edge

UGE's primary advantage is its 2x leveraged exposure, offering amplified returns compared to non-leveraged ETFs, although amplified losses are also possible. This feature targets short-term, high-risk traders looking for quick gains based on consumer goods sector movements. Its focused leverage within the consumer goods sector distinguishes it. This is attractive to those specifically bullish on this sector in the very short term.

Volatility

UGE is inherently more volatile than non-leveraged consumer goods ETFs due to its 2x leverage.

Market Risk

UGE is exposed to market risk related to the consumer goods sector, including changing consumer preferences and economic downturns. Additionally, leverage increases risk through compounding, particularly during volatile periods.

Ideal Investor Profile

UGE is suitable for sophisticated investors with a high risk tolerance who seek short-term, leveraged exposure to the consumer goods sector.

Market Risk

UGE is best suited for active traders with a short-term investment horizon, not for long-term investors.

ProShares Ultra Consumer Goods (UGE) is a leveraged ETF designed for short-term tactical trades within the consumer goods sector, aiming for 2x the daily returns of its underlying index. Its leveraged nature makes it inherently riskier than non-leveraged alternatives, suitable only for sophisticated investors with a high risk tolerance. Market risk, volatility, and compounding effects of leverage can result in significantly amplified gains or losses. Long-term suitability is limited due to the daily reset feature, potentially leading to performance erosion over time, making it unsuitable for long-term investors.

Data Sources:

• ProShares website
• ETF.com
• SEC filings

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Leveraged ETFs are complex instruments and should be fully understood before investing.