ProShares Ultra Financials

UYG

Market cap $829M

Leveraged ETFs like ProShares Ultra Financials ETF are designed for short-term trading, not long-term holding, due to the erosion of time value in derivatives. UYG aims to deliver 2x the daily performance of the S&P Financial Select Sector Index, using derivatives rather than holding double the shares. Daily resets in leveraged ETFs can lead to value loss over time, making them unsuitable for long-term investments, especially in volatile markets.

The ProShares Ultra Financials ETF offers 2x daily leverage on the S&P Financial Select Sector Index, ideal for bullish short-term traders. UYG's 0.95% expense ratio is competitive for leveraged ETFs, but higher than non-leveraged sector ETFs, impacting returns in flat markets. Leveraged exposure can amplify gains and losses, making UYG suitable for high-risk tolerance and short-term strategies, not long-term holding.