Leveraged Consumer Staples ETF Investing for Beginners

Investing in leveraged consumer staples ETFs can be a great way to diversify your portfolio and potentially generate steady returns.

These funds focus on consumer staples, which are essential goods and services that people need and use regularly, such as food, household items, and personal care products.

Consumer staples are often less affected by economic downturns, making them a relatively stable investment option.

The ProShares UltraPro S&P 500 Consumer Staples 3X ETF (SCAP) is an example of a leveraged consumer staples ETF that seeks to deliver 300% of the daily performance of the S&P 500 Consumer Staples Index.

By investing in SCAP, you can potentially amplify your returns, but keep in mind that this also means you'll be amplifying your losses if the market moves against you.

The ETF holds a portfolio of consumer staples stocks, including companies like Procter & Gamble and Coca-Cola, which are leaders in their respective industries.

This diversification can help reduce risk and increase potential returns.

UGE, or ProShares Ultra Consumer Staples, is a passively managed ETF launched in 2007.

It's designed to track the daily performance of the S&P Consumer Staples Select Sector Index, aiming to deliver two times (2x) the daily returns of the index.

UGE invests in a portfolio of 46 securities, with the top 10 holdings making up 59.3% of the fund's assets.

UGE is a type of actively managed ETF with a relatively short average management tenure of 9.05 years. The management team consists of two members: Michael Neches and Tarak Davé, who have been with the company since 2013 and 2018, respectively.

The ETF is based on the S&P Cons Staples Select Sector TR USD index and has a unique weighting of 200%. This means that the fund's performance is closely tied to the performance of the underlying index.

UGE has a portfolio of 46 securities, with the top 10 holdings making up a significant 59.3% of the ETF's assets. This concentration of assets in a few holdings may increase the fund's risk.

As a nondiversified fund, UGE is required to meet the SEC's requirements, which means it can invest in a smaller number of securities than a diversified fund. This can be beneficial for actively managed funds that are trying to outperform the market.

The ETF does not have an ESG focus, meaning that its investment selection and management do not prioritize environmental, social, and governance considerations. This may be a consideration for investors who prioritize ESG factors in their investment decisions.

UGE has a relatively low bond allocation of 0.0% of its portfolio, indicating that the fund is primarily invested in stocks. The fund also has a significant allocation to cash, with 31.0% of its portfolio invested in this asset class.

UGE is a company that specializes in designing and manufacturing solar panels and other renewable energy solutions.

UGE was founded in 2008 by Russell Tencer and Gregory Warner.

UGE has developed a range of solar panel products, including rooftop solar systems and ground-mounted solar arrays.

UGE's solar panels are designed to be efficient and durable, with a high power output and a long lifespan.

UGE has installed solar panels in over 100 locations across the United States and internationally, providing clean energy to homes, businesses, and institutions.

UGE, also known as ProShares Ultra Consumer Staples, is a passively managed ETF launched in 2007.

The fund seeks daily investment results that correspond to two times the daily performance of the S&P Consumer Staples Select Sector Index.

It's designed to track the performance of a specific sector of the S&P 500, one of eleven S&P Select Sector Indices.

The fund invests in financial instruments that ProShare Advisors believes will produce daily returns consistent with the Daily Target.

UGE is a non-diversified fund, meaning it doesn't spread its investments across various sectors to minimize risk.

The investment seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the S&P Consumer Staples Select Sector Index.

ProShares Ultra Consumer Staples has a portfolio turnover rate of 26%, which is relatively low compared to the average portfolio turnover of 965% for the Trading--Leveraged Equity category.

This low turnover rate indicates that the fund holds its assets for around 0.0 years, which can be beneficial for long-term investors.

In January 2025, the fund returned 0.4%, earning it a grade of D in the Trading--Leveraged Equity category, where the average return was 5.9%.

The fund's trailing NAV total return data as of 1/31/25 shows its performance over time.

The annual NAV total return data as of 1/31/25 provides a snapshot of the fund's performance over a year.

ProShares Ultra Consumer Staples has a trailing dividend yield of 1.42%, which is below the 2.06% category average.

This means that investors can expect a relatively low income stream from the fund's dividend payments.

Leveraged consumer staples ETFs are designed to provide a boost to the typical returns of the consumer staples sector, with some funds offering up to 2x the daily performance of the underlying index.

The underlying index for many leveraged consumer staples ETFs is the S&P 500 Consumer Staples Index, which includes companies like Procter & Gamble and Coca-Cola.

These funds use financial derivatives to amplify returns, but they can also amplify losses, making them a higher-risk investment option.

Investors who are comfortable with higher risk and want to potentially boost their returns in the consumer staples sector may find leveraged ETFs appealing.

Some leveraged consumer staples ETFs have a lower expense ratio than others, making them a more cost-effective option for investors.