Exchange-Traded Funds (ETFs) have transformed the investment landscape by offering investors diversified exposure to various sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: UPRO (ProShares UltraPro S&P500) and FAS (Direxion Daily Financial Bull 3X Shares). We will delve into key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methods, and exposure.
UPRO and FAS are distinct ETFs that cater to different investment strategies within the market. UPRO seeks to provide triple the daily performance of the S&P 500 Index, making it attractive to investors with bullish sentiments on the U.S. stock market. In contrast, FAS aims to deliver triple the daily performance of the Russell 1000 Financial Services Index, targeting the financial sector specifically. These divergent investment focuses lead to varying risk-reward profiles, which we'll examine further.
The UPRO ETF is closely tied to the performance of the S&P 500 Index, encompassing a wide range of sectors including technology, healthcare, and consumer goods. On the other hand, FAS's focus on the financial sector means its top holdings include prominent financial institutions such as JPMorgan Chase, Bank of America, and Wells Fargo. Understanding the sectors and top holdings of these ETFs can help investors align their portfolios with specific market segments.
UPRO overlap UPRO VS FAS: A Comprehensive Comparison of ETFs
UPRO's popularity is reflected in its significant Asset Under Management (AUM), as it offers leveraged exposure to the widely followed S&P 500 Index. FAS's strategy revolves around capitalizing on the performance of financial services companies. The disparity in capitalization and investment strategy between these two ETFs introduces varying degrees of risk and potential returns, which investors must carefully consider based on their investment goals.
UPRO seeks to provide triple daily exposure to the S&P 500 Index through the use of derivatives and other financial instruments. FAS employs a similar approach to achieve triple daily exposure to the Russell 1000 Financial Services Index. It's important for investors to grasp the nuances of how these ETFs track their respective benchmarks and deliver exposure to the targeted sectors.
UPRO and FAS are distinct ETFs that cater to investors seeking amplified exposure to specific market segments. To gain deeper insights into their holdings, correlations, overlaps, and other valuable information, ETF Insider offers an invaluable resource. This user-friendly app empowers investors with comprehensive details on these ETFs and other financial instruments, aiding them in making informed investment decisions.
Disclaimer: This article does not offer any investment advisory services.
Sources:
ProShares. (n.d.). ProShares UltraPro S&P 500 (UPRO). Retrieved from ProShares UPRO
Direxion. (n.d.). FAS - Daily Financial Bull 3X Shares. Retrieved from Direxion FAS
UPRO ETF issuer
UPRO ETF official page
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