(UPRO) ProShares UltraPro S&P500 - Ratings and Ratios

ProShares UltraPro S&P 500 (UPRO) is designed to deliver three times the daily returns of the S&P 500, a benchmark for large-cap U.S. equities. Its structured as a leveraged ETF, utilizing derivatives to amplify returns, which makes it a tool for short-term tactical bets rather than long-term holdings.

As a leveraged ETF, UPRO resets its exposure daily, meaning it targets 3x returns each day. This daily reset can lead to compounding effects that diverge from expectations over longer periods, especially in volatile markets. Investors should be aware that holding UPRO for extended periods may result in returns differing significantly from three times the S&P 500s performance.

UPRO is listed on the NYSE ARCA with an AUM of approximately $4.78 billion, indicating its popularity among traders. The fund is non-diversified, concentrating its investments to achieve its objective, which can heighten risk but also potentially amplify returns. Its domiciled in the United States, aligning with the S&P 500s focus on U.S. large-cap stocks.

For fund managers and investors, understanding the mechanics and risks of leveraged ETFs like UPRO is crucial. They offer the ability to capitalize on short-term market movements but require careful consideration due to their structure and associated risks, including daily resets and the use of derivatives.