4 min readBy Ron Koren ETF Insider
FXB VS FXY
Compare the FXB and FXY ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
The ProShares Ultra Russell2000 ETF (UWM) is managed by ProShare Advisors and seeks to provide daily returns that are double (2x) the daily performance of the Russell 2000 Index. The Russell 2000 Index measures the performance of small-cap U.S. stocks and includes approximately 2,000 of the smallest companies in the Russell 3000 Index, representing about 10% of the total market capitalization of the Russell 3000 Index. ProShare Advisors utilizes a mathematical approach to determine the investment positions required to achieve its daily investment objective, and the ETF primarily invests in equity securities, derivatives, and money market instruments for achieving its leveraged returns. It's important to note that UWM aims for daily results and may not perfectly track the Index's performance over longer periods due to compounding and market volatility.
While the primary focus of the ProShares Ultra Russell2000 ETF (UWM) lies in providing investors with daily leveraged exposure to the performance of the Russell 2000 Index, the fund does not emphasize dividend distributions as its primary objective. Consequently, UWM's dividend distributions may not be as consistent or substantial as those of traditional dividend-focused ETFs. The ETF's dividend eligibility, distribution, and policies are influenced by the performance of the underlying index and the financial instruments used for daily leveraged returns. Investors considering UWM should primarily assess it for its leveraged market exposure rather than relying on it as a primary source of dividend income.
The ProShares Ultra Russell2000 ETF, with the ticker symbol UWM, is designed to provide investors with leveraged exposure to the performance of the Russell 2000 Index. This ETF seeks to deliver daily returns that are two times (2x) the daily returns of the Russell 2000 Index. To achieve this objective, the fund primarily invests in financial instruments, including equity securities, derivatives such as swap agreements and futures contracts, and money market instruments. UWM aims to maintain a portfolio that aligns with the daily investment objective, using mathematical strategies for asset allocation and daily rebalancing. Investors should be aware that due to daily rebalancing and compounding, the fund's returns over a period longer than a single day can differ from two times (2x) the return of the underlying Russell 2000 Index. It's important to consider the fund's investment objectives and principal risks, as outlined in its Prospectus, before investing.
The correlation aspect of the ProShares Ultra Russell2000 ETF (UWM) is essential for investors aiming to comprehend its behavior concerning the Russell 2000 Index, which it seeks to double on a daily basis. Given UWM's objective of providing 2x leveraged exposure to this small-cap index, its correlation with the Russell 2000 is expected to be strong. This high correlation makes UWM a powerful tool for investors looking to amplify their returns when the Russell 2000 is trending upward but also exposes them to increased risk during downturns. To study and analyze UWM's correlations with other assets and sectors, as well as to understand its overlap with different market segments, investors can utilize the ETF Insider web app, which offers deep and insightful data visualization tools.
The ProShares Ultra Russell2000 ETF (UWM) focuses on the small-cap U.S. stock market performance, tracking the Russell 2000® Index. This index includes approximately 2,000 of the smallest companies in the Russell 3000® Index, with a particular emphasis on the financials and industrials industry groups. UWM employs a mathematical approach to provide leveraged exposure to the daily returns of the Russell 2000® Index, which can be beneficial for investors seeking amplified gains in the small-cap sector. However, due to its daily rebalancing and compounding effects, UWM may not perfectly track two times (2x) the index's returns over longer periods, and it carries additional risks associated with leveraged investments.
The ProShares Ultra Russell2000 ETF (UWM) seeks to provide daily returns that are double the performance of the Russell 2000 Index. As such, UWM offers investors a leveraged exposure to the small-cap segment of the U.S. stock market. The fund primarily invests in equity securities, derivatives, and money market instruments to achieve its investment objective.
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4 min readCompare the FXB and FXY ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
4 min readThe ETF with T-Mobile US Inc. and Cintas Corp. Exposure (Nasdaq) exposure provides investors with an opportunity to diversify their portfolio while gaining insight into the performance and potential of T-Mobile US Inc. and Cintas Corp. Exposure (Nasdaq). This ETF offers a comprehensive view of the company's standing in the market, its historical performance, and future prospects.
5 min readThe UWM ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
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