ProShares UltraPro MidCap400 (UMDD)

Overview

The ProShares UltraPro MidCap400 (UPRO) is a leveraged ETF designed to deliver three times (3x) the daily performance of the S&P MidCap 400 Index. It provides exposure to mid-sized U.S. companies but with amplified gains and losses.

Reputation and Reliability

ProShares is a well-known issuer of leveraged and inverse ETFs, considered reliable but specializing in higher-risk products.

Management Expertise

ProShares has a dedicated team with expertise in managing leveraged and inverse investment strategies.

Goal

To seek daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the S&P MidCap 400 Index.

Investment Approach and Strategy

Strategy: The ETF uses a leveraged strategy to achieve 3x daily exposure to the S&P MidCap 400 Index.

Composition The ETF holds derivatives and other instruments to create leveraged exposure to the stocks within the S&P MidCap 400 Index. Primarily stocks with some derivative overlay.

Market Share: UPRO holds a notable share within the leveraged mid-cap ETF segment, though it's a niche market compared to broader mid-cap ETFs.

Total Net Assets (AUM): 1250000000

Key Competitors

• Direxion Daily Mid Cap Bull 3X Shares (MIDU)
• SPDR S&P MidCap 400 ETF Trust (MDY)
• iShares Core S&P Mid-Cap ETF (IJH)

Competitive Landscape

The leveraged ETF market is competitive, with ProShares and Direxion being the main players. UPRO provides higher leverage than some competitors but also carries increased risk. Traditional mid-cap ETFs like MDY and IJH offer non-leveraged exposure and attract a broader investor base.

Historical Performance: Historical performance can vary significantly due to the leveraged nature. Data required from financial source to populate performance here.

Benchmark Comparison: The ETF aims to deliver 3x the *daily* performance, not long-term performance, of the S&P MidCap 400, so long-term comparisons are generally not relevant.

Expense Ratio: 0.95

Average Trading Volume

UPRO typically exhibits moderate to high trading volume, facilitating relatively easy entry and exit.

Bid-Ask Spread

The bid-ask spread is typically competitive, but can widen during periods of high volatility or low trading volume.

Market Environment Factors

Economic growth, interest rate changes, and overall market sentiment significantly impact mid-cap stock performance, which in turn affects UPRO.

Growth Trajectory

The growth trajectory depends heavily on the performance of mid-cap stocks. Leveraged ETFs rebalance daily, which impacts long-term performance.

Competitive Edge

UPRO's competitive edge lies in its 3x leverage, appealing to investors seeking amplified daily returns. It offers a targeted way to express a bullish view on mid-cap stocks. However, this leverage also magnifies losses, making it unsuitable for risk-averse investors. ProShares' reputation as a leading provider of leveraged ETFs adds to its appeal.

Volatility

UPRO is highly volatile due to its leveraged nature. Expect amplified swings compared to non-leveraged mid-cap ETFs.

Market Risk

UPRO is susceptible to market risk associated with mid-cap stocks. Compounding and daily rebalancing can lead to performance that differs significantly from 3x the index return over longer periods.

Ideal Investor Profile

UPRO is best suited for sophisticated investors with a high-risk tolerance and a short-term investment horizon who understand the complexities of leveraged ETFs.

Market Risk

UPRO is designed for active traders looking to capitalize on short-term market movements. It is not suitable for long-term buy-and-hold investors due to the effects of compounding and daily rebalancing.

ProShares UltraPro MidCap400 (UPRO) is a leveraged ETF designed for short-term trading, offering 3x the daily performance of the S&P MidCap 400 Index. While it provides the potential for magnified gains, it also carries substantial risk due to its leveraged nature and daily rebalancing. It is best suited for sophisticated investors with a high-risk tolerance and short-term trading strategies. Long-term performance can deviate significantly from the index's return due to the effects of compounding, and is therefore unsuitable for long-term investment.

Data Sources:

• ProShares website
• SEC Filings
• Financial data providers (e.g., Bloomberg, Reuters)

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Leveraged ETFs are complex instruments and carry significant risks. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.