ProShares is launching several new infamous +3x and -3x ETFs with exposure to the major U.S. indexes:
- NASDAQ-100®
- DJIA®
- S&P500®
- S&P MidCap 400™
- Russell 2000®
Investors should be aware that leveraged ETFs cause tremendous losses, hundreds of billions of dollars for whoever buys them.
3X ETFs (not 300%)
UltraPro ETFs seek to provide a return of 3x, the return of an index
for a single day (before fees and expenses). And UltraPro Short ETFs seek to provide a return of -3x, the return of an index
for a single day (before fees and expenses). Note that ProShares says that the returns are 300%, which is wrong. 300% is 4X). We hope their computers do better math.
For example:
- On an up day, when the market gains 1%, a 3x leveraged fund is designed to gain about 3% and a -3x inverse fund is designed to lose about 3%.
- But on a down day, when the market loses 1%, a 3x leveraged fund is designed to lose roughly 3% and a -3x inverse fund is designed to gain roughly 3%.
ProShares says (again, ignore the match errors):
"Most ProShares ETFs seek a return that is a multiple (e.g., 200%, -300%) of the return of an index or other benchmark (target)
for a single day.
Due to the compounding of daily returns, Ultra and Short ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the
prospectus."
Ticker symbols:
NASDAQ-100
UltraPro QQQ (TQQQ)
ProShares UltraPro QQQ seeks daily investment results, before fees and expenses, that correspond to triple (300%) the daily performance of the NASDAQ-100 Index®.
UltraPro Short QQQ (SQQQ)
ProShares UltraPro Short QQQ seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the NASDAQ-100 Index®.Dow Jones Industrial AverageSM
UltraPro Dow30 (UDOW)
ProShares UltraPro Dow30 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the daily performance of the Dow Jones Industrial AverageSM Index.
UltraPro Short Dow30 (SDOW)
ProShares UltraPro Short Dow30 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the Dow Jones Industrial AverageSM Index.S&P 500®
UltraPro S&P500 (UPRO)
ProShares UltraPro S&P500 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the daily performance of the S&P 500®.
UltraPro Short S&P500 (SPXU)
ProShares UltraPro Short S&P500 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the S&P 500®. S&P MidCap 400TM Index
UltraPro MidCap400 (UMDD)
ProShares UltraPro MidCap400 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the daily performance of the S&P MidCap 400 Index.
UltraPro Short MidCap400 (SMDD)
ProShares UltraPro Short MidCap400 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the S&P MidCap 400 Index.Russell 2000® Index
UltraPro Russell2000 (URTY)
ProShares UltraPro Russell2000 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the daily performance of the Russell 2000® Index.
UltraPro Short Russell2000 (SRTY)
ProShares UltraPro Short Russell2000 seeks daily investment results, before fees and expenses, that correspond to triple (300%) the inverse (opposite) of the daily performance of the Russell 2000® Index.
