UMDD
ProShares UltraPro MidCap400
📎 Investment Objective
The ProShares UltraPro MidCap400 ETF (UMDD) seeks to provide daily investment results that correspond to three times (3x) the daily performance of the S&P MidCap 400 Index.
Overview
ETF tracking ProShares UltraPro MidCap400
Performance
Price Chart
Investment Summary
📎 Investment Objective
The ProShares UltraPro MidCap400 ETF (UMDD) seeks to provide daily investment results that correspond to three times (3x) the daily performance of the S&P MidCap 400 Index.
🎯 Investment Strategy
The fund uses a combination of financial instruments, such as futures contracts and swap agreements, to provide leveraged exposure to the S&P MidCap 400 Index. This strategy aims to amplify the daily returns of the underlying index by a factor of three.
✨ Key Features
- Provides 3x daily leveraged exposure to the S&P MidCap 400 Index
- Utilizes derivatives to achieve its leveraged investment objective
- Designed for short-term trading and not suitable for long-term buy-and-hold investors
- Has a high expense ratio compared to non-leveraged mid-cap ETFs
⚠️ Primary Risks
- Significant risk of loss due to the leveraged nature of the fund
- Potential for increased volatility and larger daily swings in value
- Tracking error risk, as the fund may not perfectly match the 3x daily performance of the index
- Counterparty risk associated with the use of derivatives
👤 Best For
This ETF is designed for experienced, sophisticated investors who have a high risk tolerance and are seeking short-term, leveraged exposure to the mid-cap equity market. It is not suitable for long-term, buy-and-hold investors or those with a low risk tolerance.