ProShares UltraPro Dow 30

UDOW

Market cap $693M

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.

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.

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 UltraPro Dow30 (UDOW) offers 3X leverage on the Dow Jones, requiring close monitoring due to drift from beta-slippage. Why leveraged ETFs drift and a dashboard with 22 of them. Beware of leveraged ETFs in volatile industries.

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.

Leveraged ETFs often underperform their underlying index, mostly due to beta-slippage. Monthly and yearly drift watchlist shows varying levels of drift in leveraged ETFs, with some experiencing decay and others positive drift. UDOW historical data reveal a negative average drift and underwhelming performance over the last 5 years.

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.

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. ProShares UltraPro Dow30 (UDOW) has experienced both positive and negative drift, with an average 12-month drift of -1.96%.