Summary
UDOW Chart
Measuring UDOW's Drift, And Leveraged ETF Watchlist
Leveraged ETFs often underperform their underlying index due to beta-slippage. Monthly and yearly drift can be monitored to assess the performance of leveraged ETFs relative to their underlying index. UDOW's average 12-month drift is -2.43%, with compounding volatility eroding returns, especially during market whipsaws.
UDOW: Risks And Monthly Leveraged ETFs Report
ProShares UltraPro Dow30 ETF's 3X leverage introduces significant drift, especially in volatile markets, making it risky for long-term investors. Drift is path-dependent and worsens with volatility and leverage, often resulting in underperformance versus the underlying index over time. UDOW has delivered strong long-term gains during bull markets, but suffered severe drawdowns and underperformed DIA since 2022.
UDOW And Leveraged ETFs Drift Update
ProShares UltraPro Dow30 ETF is a popular leveraged ETF for swing trading, but its 3X leverage factor causes drift, requiring close monitoring. Positive drift occurs in steady trends, while negative drift results from high volatility; UDOW has a negative average drift. UDOW is not suitable for buy-and-hold strategies and is designed for informed traders who understand its path-dependent behavior and potential long-lasting losses.
ProShares UltraPro Dow30 Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 175 | $8,781.5 | $12,036.5 | $3,255 | 37.07% |
 Jeff Ameen Spire Wealth Management | 3,593 | $211,255.16 | $245,132.42 | $33,877.26 | 16.04% |
| WB William Bromley Innova Wealth Partners | 10,420 | $493,610.5 | $711,165 | $217,554.5 | 44.07% |
 Christian Keedy Guardian Wealth Advisors LLC / Nc | 100 | $5,018 | $6,842.5 | $1,824.5 | 36.36% |
| MFA Millington Financial Advisors LLC Millington Financial Advisors LLC | 12,840 | $398,833.44 | $874,789.2 | $475,955.76 | 119.34% |
ProShares UltraPro Dow30 (UDOW) FAQ
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ProShares UltraPro Dow30 Profile
| ARCA Exchange | US Country |
Overview
The described company is a fund managed by ProShare Advisors, focusing on delivering daily returns that align with a specified Daily Target. This goal is approached by investing in a selection of financial instruments carefully chosen by ProShare Advisors. The fund's strategy revolves around a specific index, characterized as a price-weighted index encompassing 30 large-cap, "blue-chip" U.S. stocks. Notably, this selection excludes companies from the utility and transportation sectors, aiming to craft a particular investment atmosphere. The fund is explicitly mentioned as non-diversified, indicating a concentrated investment approach in line with its objectives. This strategic focus on large-cap stocks and the exclusion of utility and transportation sectors suggest a tailored investment experience designed to meet the expectations of certain investors.
Products and Services
Under its investment approach, the fund managed by ProShare Advisors offers a distinct product:
- Daily Target-based investment fund
This specialized investment product is designed to follow a daily performance target. By investing in a meticulously curated mix of financial instruments, the fund aims to achieve daily returns that align with its predetermined objective. The focus on large-cap, "blue-chip" U.S. stocks, to the exclusion of utility and transportation sectors, emphasizes a unique market segment. This product is tailored for investors looking for exposure to select U.S. equities and who are comfortable with the level of risk associated with a non-diversified fund structure. It highlights ProShare Advisors' strategy to leverage its expertise in market analysis and investment selection to meet specific investment goals.
