6 min readBy Ron Koren ETF Insider
How does the BSCW ETF work?
The BSCW 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.
ProShare Advisors is the issuer behind the UXI ETF, known as the ProShares Ultra Industrials ETF. This ETF seeks to provide investors with daily returns that are twice the performance of the S&P Dow Jones U.S. Industrials Index. ProShare Advisors employs a mathematical approach to achieve its investment objective, using a combination of financial instruments, including equity securities, derivatives, and money market instruments. The ETF is designed to measure the stock performance of U.S. companies in the industrials industry, with a particular focus on sectors such as building materials, heavy construction, factory equipment, and more. Investors seeking leveraged exposure to the industrials sector can consider the UXI ETF for their portfolio.
While the primary objective of the ProShares Ultra Industrials ETF (UXI) is not focused on dividends, it follows a dividend distribution pattern influenced by the performance and policies of the underlying S&P Dow Jones U.S. Industrials Index. Dividend distributions typically occur in line with the constituents' individual dividend policies. UXI primarily seeks to provide daily leveraged returns that are 2x the performance of the Index, making it an option for investors looking for leveraged exposure to the industrials sector rather than dividend income. It is important to note that daily rebalancing and compounding can lead to returns differing from twice the Index's return over extended periods. Please refer to the Fund's prospectus for further information on its investment objectives and risks.
The ProShares Ultra Industrials ETF, known as UXI, is designed to closely track the performance of the S&P Dow Jones US Industrials Index. This index measures the stock performance of various U.S. companies within the industrials sector, including building materials, heavy construction, factory equipment, pollution control, and more. UXI primarily achieves its tracking goal by investing in financial instruments like equity securities, derivatives, and money market instruments, aiming to provide investors with leveraged (2x) exposure to the daily returns of the underlying index. ProShare Advisors employs a mathematical approach to ensure UXI's daily returns align with its investment objective, regardless of market conditions, and engages in daily rebalancing to maintain this alignment, although long-term performance may vary from double the index returns due to compounding and volatility factors. Please refer to the Fund's Prospectus for a comprehensive understanding of its investment objectives, strategies, and associated risks. As of May 31, 2022, the Index concentrated on the industrials industry group, including capital goods and software & services industry groups, which UXI aims to reflect in its investment approach.
The correlation aspect of the ProShares Ultra Industrials ETF (UXI) is closely tied to its daily objective of delivering double the performance of the DJ US Industrials Index. Given its goal, UXI generally exhibits a high correlation with the industrials sector and, specifically, the companies included in the DJ US Industrials Index. As the ETF seeks to provide leveraged exposure to the single-day returns of the index, it maintains a strong correlation, making it suitable for traders seeking amplified industrial sector exposure. Investors looking to understand how UXI aligns with their portfolios can utilize ETF Insider's web app, which offers comprehensive data and visualization tools to explore its correlations and identify potential overlap with other assets and sectors.
The UXI Sector ETF seeks to provide daily returns that correspond to twice (2x) the daily performance of the Dow Jones U.S. Industrials Index. This ETF is primarily invested in financial instruments such as equity securities and derivatives, with a focus on the industrials industry. The index it tracks includes various sectors within industrials, such as building materials, heavy construction, industrial services, transportation, and aerospace. Investors considering UXI should be aware that its concentration in the industrials sector can lead to increased volatility and exposure to market movements within this industry.
The exposure characteristic of the ProShares Ultra Industrials ETF (UXI) is centered on the industrials industry in the United States. This ETF seeks to deliver daily returns that are two times (2x) the performance of the S&P Dow Jones Indices LLC Industrials Index, which includes companies involved in building materials, heavy construction, factory equipment, industrial services, and more. UXI achieves this through a combination of equity securities, derivatives, and money market instruments, aiming to magnify the daily movements of its benchmark index. Investors looking to leverage their exposure to the U.S. industrials sector can consider UXI for potential opportunities.
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6 min readThe BSCW 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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4 min readThe UXI 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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