ProShares UltraShort S&P 500 Investment Details and Ratings

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The ProShares UltraShort S&P 500 is an inverse ETF that aims to return the opposite of the S&P 500 index. This means if the S&P 500 goes up, the fund goes down, and vice versa.

This ETF is designed to provide a short position in the US stock market, allowing investors to potentially profit from a decline in the market. It's a popular choice among traders and investors looking to hedge their portfolios or take a bearish stance.

The fund has a net expense ratio of 0.91%, which is relatively low compared to other inverse ETFs. This means investors won't have to pay a lot in fees to invest in the ProShares UltraShort S&P 500.

Investors should note that the fund's performance can be volatile, and it's not suitable for all investors, especially those who are risk-averse or new to investing.

A unique perspective: Proshares Ultrashort Euro

About S&P 500

The S&P 500 is a measure of large-cap U.S. stock market performance. It's a widely followed index that tracks the performance of 500 of the largest publicly traded companies in the US.

For another approach, see: Vanguard Index Funds S

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The S&P 500 TR USD index is the primary benchmark for ProShares UltraShort S&P500, with a weighting of -200%. This means the fund's performance is inversely correlated to the S&P 500.

The S&P 500 is a key indicator of the overall health of the US stock market. It's watched closely by investors, analysts, and economists to gauge market trends and make informed investment decisions.

The S&P 500 has a diverse portfolio of 500 stocks, representing various sectors and industries.

S&P 500 Details

The S&P 500 is a stock market index that tracks the performance of 500 large-cap US companies.

Its components are selected based on market capitalization, liquidity, and other criteria.

The S&P 500 is widely regarded as a benchmark for the overall US stock market.

The index is calculated and maintained by S&P Dow Jones Indices, a leading index provider.

The S&P 500 is a market-capitalization-weighted index, meaning that larger companies have a greater impact on the index's performance.

The index is widely followed by investors, analysts, and the media.

It's a popular choice for index funds and ETFs, including the ProShares UltraShort S&P 500.

Ratings and Grades

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The ProShares UltraShort S&P 500 ETF has received a grade of C for its performance over the past year, with a return of -31.1%.

The ETF has consistently received a grade of C across various time periods, including the past three years (-18.3%) and five years (-29.8%). This suggests that the ETF has underperformed its category average during these periods.

The ETF's expense ratio is 0.89%, which is considered High according to the category ratings. This is lower than the category average expense ratio of 1.05%.

Here is a summary of the ETF's grades:

SDS Issuer

The SDS issuer, ProShares Trust, operates with a focused investment strategy designed to achieve daily returns inversely correlated to the performance of the S&P 500 Index.

ProShares Trust primarily invests in financial instruments, including derivatives such as swap agreements and futures contracts, to attain inverse leveraged exposure to at least 80% of its total assets in components securities of the S&P 500 Index.

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The Trust may hold money market instruments like U.S. Treasury Bills and Repurchase Agreements to manage cash balances associated with its derivative usage.

ProShare Advisors dynamically adjusts the Trust's portfolio daily to align with its investment objective, regardless of prevailing market conditions.

The Trust endeavors to remain fully invested at all times while rebalancing its portfolio to maintain consistent exposure to the S&P 500 Index.

Category Ratings

Category ratings can be a bit confusing, but let's break it down simply. The ProShares UltraShort S&P 500 ETF has a Total Risk Rating of High, which means it's considered riskier than average. This is based on a Total Risk Index of 2.24, which is higher than the category average.

To give you a better idea of how this ETF stacks up against its peers, let's look at the Category Ratings. According to the data, the 80th to 100th percentile is considered High, the 60th to 79th percentile is Above Average, the 40th to 59th percentile is Average, the 20th to 39th percentile is Below Average, and the 0 to 19th percentile is Low.

If this caught your attention, see: Vanguard Total Market Index Etf

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Here's a table to summarize the Category Ratings:

The expense ratio of the ProShares UltraShort S&P 500 ETF is 0.89%, which is considered High according to the Category Ratings. This is lower than the category average of 1.05%.

Performance and Fees

ProShares UltraShort is a fund that aims to provide a daily return that is the inverse of the S&P 500 index. The fund's performance has been quite volatile, with a current year performance of -9.07% and a maximum loss of -25.69% over the past year.

The fund's tracking error is substantial, with a 1-year tracking error of 47.71%. This means that the fund's returns have deviated significantly from the S&P 500 index over the past year. The fund's beta is also negative, at -2.55, indicating that it tends to move in the opposite direction of the S&P 500 index.

Here is a summary of the fund's performance metrics:

The fund's fees are not explicitly mentioned in the provided article section, but the fund's performance metrics suggest that it may not be the best option for investors seeking low-risk investments.

Performance

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The performance of an investment is a crucial factor to consider when deciding whether to invest. The current performance of this investment is -9.07% for the current year.

Over the long term, the performance has been even more dismal, with a loss of -99.75% since inception. This is a significant decline and raises concerns about the investment's potential for long-term growth.

The high and low points of the investment's performance over the past year are 18.36% and 12.53%, respectively. This suggests that the investment has had some positive periods, but they have been outweighed by the losses.

Here's a breakdown of the investment's performance over the past year:

The maximum loss over the past year has been -25.69%, which is a significant decline. It's essential to consider this risk when deciding whether to invest.

Operating Fees

Operating fees play a significant role in determining the overall cost of managing your investments. You can expect to pay anywhere from 0.25% to 1.5% of your portfolio's value annually.

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Some investment managers charge a flat fee, which can range from $1,000 to $50,000 per year, depending on the size of your portfolio. This fee structure is often seen in smaller investment firms.

Other managers charge a percentage of your portfolio's value, which can be higher for smaller accounts. For example, a manager might charge 1% of your portfolio's value if you have less than $100,000 invested.

The fee structure you choose can impact your investment returns over time. A higher management fee can eat into your returns, reducing the growth of your portfolio.

Comparison and History

ProShares UltraShort is a type of exchange-traded fund (ETF) that aims to provide a daily return that is the inverse of the S&P 500 Index.

The fund was launched in 2006, making it one of the first inverse ETFs available to investors. It was designed to give investors a way to profit from a declining market.

The ProShares UltraShort S&P 500 ETF (SDS) uses a combination of futures contracts and swaps to track the inverse performance of the S&P 500 Index. This allows it to provide a daily return that is the opposite of the S&P 500 Index.

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Funds Category Comparison

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In the world of funds, performance is key. The Transamerica ProFund UltraBear VP Service Class had a 1-year performance of -20.39.

This is a stark contrast to the ProShares UltraPro Short MidCap400, which had a 1-year performance of -19.61. The MicroSectorsTM Oil & Gas Exploration & Production -3X Inverse Leveraged ETNs also fared well, with a 1-year performance of -19.65.

Here's a quick rundown of the top 5 funds in the category:

It's worth noting that the ProShares UltraPro Short Russell2000 had a 1-year performance of -19.35.

Historical Real Estate Prices

Historical Real Estate Prices are a great way to understand the fluctuations in the market over time. In the 1960s, the median home price in the United States was around $14,000.

The 1970s saw a significant increase in home prices, with the median home price rising to around $23,000. This was largely due to inflation.

By the 1980s, the median home price had more than doubled, reaching around $53,000. The real estate market was booming.

See what others are reading: Real Estate Investment Returns

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In the 1990s, home prices continued to rise, with the median home price reaching around $93,000. This was a significant increase from the previous decade.

The 2000s saw a major housing bubble, with home prices skyrocketing to around $185,000. This was followed by a sharp decline in the 2008 housing market crash.

By the 2010s, home prices had recovered somewhat, reaching around $140,000. The market was slowly recovering.

Frequently Asked Questions

What are ProShares UltraShort?

ProShares UltraShort Technology is an inverse ETF that aims to return two times the daily opposite performance of the S&P Technology Select Sector Index. It's designed for investors seeking to profit from a decline in tech stocks.

What does ProShares UltraPro do?

ProShares UltraPro QQQ aims to track the daily performance of the Nasdaq-100 Index, multiplying it by three. It's designed for investors seeking triple the daily gains of the index.

What is ultra short qqq?

The ProShares UltraPro Short QQQ (SQQQ) is a 3x leveraged inverse ETF that inversely tracks the Nasdaq 100 index, aiming to return -3 times its performance. It's a high-risk investment focused on tech and telecom stocks.

Wilbur Huels

Senior Writer

Here is a 100-word author bio for Wilbur Huels: Wilbur Huels is a seasoned writer with a keen interest in finance and investing. With a strong background in research and analysis, he brings a unique perspective to his writing, making complex topics accessible to a wide range of readers. His articles have been featured in various publications, covering topics such as investment funds and their role in shaping the global financial landscape.

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