ProShares Ultra Industrials (UXI)

Overview

ProShares Ultra Industrials (UXI) is a leveraged ETF that seeks daily investment results, before fees and expenses, that correspond to twice (2x) the daily performance of the Dow Jones U.S. Industrials Index. It provides leveraged exposure to U.S. industrial companies.

Reputation and Reliability

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

Management Expertise

ProShares has extensive experience in managing leveraged and inverse ETFs, employing sophisticated strategies to achieve their stated objectives.

Goal

The investment objective of UXI is to seek daily investment results, before fees and expenses, that correspond to twice (2x) the daily performance of the Dow Jones U.S. Industrials Index.

Investment Approach and Strategy

Strategy: UXI employs a leveraged strategy, aiming for 2x the daily performance of the Dow Jones U.S. Industrials Index through the use of derivatives such as swap agreements.

Composition UXI's assets primarily consist of financial instruments, including swap agreements, that allow the fund to achieve its leveraged exposure to the Dow Jones U.S. Industrials Index. Holdings are rebalanced daily.

Market Share: UXI's market share within the leveraged industrials ETF segment is significant, but it is a niche market.

Total Net Assets (AUM): 44.74

Key Competitors

• Direxion Daily Industrials Bull 3X Shares (DUSL)
• ProShares Short Industrials (SIJ)
• MicroSectors U.S. Big Oil Index 3X Leveraged ETN (NRGU)

Competitive Landscape

The leveraged industrials ETF market is relatively concentrated, with ProShares and Direxion being the primary players. UXI offers a 2x leveraged exposure, which may be attractive to some investors, while others might prefer a 3x leveraged option like DUSL. Investors should consider their risk tolerance and investment objectives before investing in these products.

Historical Performance: Historical performance is highly dependent on the performance of the Dow Jones U.S. Industrials Index. Due to the leverage, UXI can experience significant gains or losses in short periods. Data is not available without a specific date request from an external API.

Benchmark Comparison: UXI's performance should be compared to 2x the daily performance of the Dow Jones U.S. Industrials Index. However, due to the effects of compounding, its long-term performance can deviate significantly from 2x the index's return.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume for UXI is approximately 116.53K shares, indicating moderate liquidity.

Bid-Ask Spread

The typical bid-ask spread for UXI can vary but is usually around $0.03, reflecting reasonable trading costs.

Market Environment Factors

UXI's performance is significantly influenced by economic growth, industrial production, interest rates, and global trade conditions. Positive economic data and increased industrial activity typically benefit UXI, while economic slowdowns can negatively impact it.

Growth Trajectory

UXI's growth is tied to the industrial sector's performance and investor appetite for leveraged products. Changes in the underlying index or the fund's leverage ratio could impact its growth.

Competitive Edge

UXI's competitive advantage lies in its established presence and brand recognition within the leveraged ETF space. Its focused exposure to the U.S. industrial sector, combined with its 2x leverage, provides a unique investment option for sophisticated investors. The ETF allows short-term traders to amplify potential gains (or losses) from the industrial sector's daily performance. However, the effects of compounding can lead to significant deviations from the targeted 2x return over longer periods. Due to its nature, the fund must be constantly monitored.

Volatility

UXI is highly volatile due to its leveraged nature, meaning it experiences larger price swings than non-leveraged industrial ETFs.

Market Risk

UXI is subject to market risk, particularly the risk associated with the U.S. industrial sector. Economic downturns, trade disputes, and other negative events can significantly impact the value of UXI.

Ideal Investor Profile

The ideal investor for UXI is a sophisticated, active trader with a high-risk tolerance who seeks short-term exposure to the U.S. industrial sector.

Market Risk

UXI is best suited for short-term trading and is not appropriate for long-term investors due to the effects of compounding and the potential for significant losses.

ProShares Ultra Industrials (UXI) is a leveraged ETF designed to deliver twice the daily performance of the Dow Jones U.S. Industrials Index. It is a high-risk, high-reward investment vehicle suitable for sophisticated traders seeking short-term exposure to the industrial sector. Its performance is highly volatile and subject to market risks. Due to the effects of compounding, long-term holding periods are strongly discouraged. Investors should carefully consider their risk tolerance and investment objectives before investing in UXI.

Data Sources:

• ProShares Official Website
• ETF.com
• Yahoo Finance
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investing in ETFs involves risk, including the potential loss of principal. Leveraged ETFs are particularly risky and are not suitable for all investors. Past performance is not indicative of future results.