ProShares Ultra Dow30

DDM

Market cap $431M

ProShares Ultra Dow30 ETF (DDM) offers 2x daily Dow Jones exposure but is highly volatile and subject to decay, especially in choppy markets. While DDM has delivered robust long-term returns, its deep drawdowns and high volatility make it risky for passive, long-term holding. Current market valuations are stretched, with sentiment in 'Greed' territory and P/E ratios above historical averages, signaling caution for leveraged exposure.

DDM is designed for 2x daily Dow Jones 30 performance, making it suitable for short-term speculation or hedging, not long-term investing. Leveraged ETFs like DDM can significantly deviate from their daily targets over longer periods, especially in volatile markets, leading to potential losses. The fund uses derivatives, which lose time value over time, further reinforcing that DDM is not appropriate for buy-and-hold strategies.

The SPY's 28% YTD rise is driven by the 'Mag 7,' making the index heavily concentrated in Information Technology. The DJI, with a 19% YTD increase, offers a more balanced sector exposure and has outperformed SPY since the election. DIA is an efficient way to gain exposure to U.S. Blue Chips, while DDM provides 2x leverage but comes with higher risks.

The Dow Jones crosses the 45,000 milestone for the first time ever. Investors seeking to participate in the rally can consider these ETFs.

ProShares Ultra Dow30 ETF offers 2x daily leverage on the Dow Jones Industrial Average, ideal for short-term, high-risk tactical moves. The DDM ETF achieves leverage through swaps with major banks, providing exposure to blue-chip stocks like Apple and Goldman Sachs without owning them directly. This ETF is best for bullish investors on the Dow, but its daily resets can cause tracking errors and increased volatility over longer periods.

The Dow Jones hit a new all-time high following a stronger-than-expected jobs report, which renewed investors' confidence about the health of the economy.

The Dow Jones hit a new record high, outperforming the other two indices on Monday on increased September rate cut bets.

The Dow Jones gained for six consecutive days, marking its longest winning streak this year and emerging more powerful than the other two major indices.

The laggard of the three key U.S. equity gauges in 2023 -- the Dow Jones Industrial Average -- managed to close the first trading day of 2024 in the green, unlike the S&P 500 and the Nasdaq.

Last week, the Dow Jones Industrial Average attained a historic landmark, reaching a record high, thanks to the Federal Reserve's dovish stance and tone.