Best ProShares ETF In 2023

What is the Best Proshare ETF?

ProShares ETFs are investment instruments offered by the ProFunds Group investment group. ProShares ETFs differ from many other ETFs in that they allow leverage in both bear and bull positions. Meaning you can multiply your returns regardless of which way you think the market will go in the future. In terms of assets under management. ProShares is significantly smaller than many of its competitors, such as Vanguard and iShares. While many competing investment companies manage up to trillions of dollars in assets through their ETFs, ProShares manages only 50 billion worth of assets. However, this in no way makes ProShares a worse option compared to other ETF fund providers,

ProFunds Group, which manages ProShares ETF funds, was founded in 1997 by Louis Mayberg and Michael Sapir. Both of them had previously worked at a rival investment firm, Rydex. What makes the founding of this company quite special and eye-catching is that the investment company in question was founded by only two people, with only $100,000 in assets. Right in 1997. The company started revolutionizing the market with its innovative funds, being the first to launch the Bear fund, which operated with the opposite leverage about market changes. The ETF market was revolutionized by ProFunds Group in 2006 when they launched their first inverse leveraged ETF in 2006.

Best ProShare ETF Revolution:

Having joined the crest of the ETF revolution in 2006, ProShares now offers a very wide selection of ETFs. Even though their assets under management are quite small compared to many of their competing investment firms. Today, the ProShares ETF product family includes more than 100 different ETF funds, which offer different degrees of leverage, either with the market in the form of Bull or with the opposite leverage in the form of Bear. Thus offering its investors a very easy opportunity to benefit from both the rise and fall of the market.

The Current Range of ETF Funds:

ProShars’ current range of ETF funds is spread across a wide range of market segments, geographies, and sectors. So whether you want to invest through a leveraged ETF fund in the stock market, dividend aristocrats, or, for example, government bonds, with or without leverage, you will most likely find a product from the ProShares product family that suits your needs. So you can use ProShares ETFs to bring strong diversification into your investment strategy, while also increasing your risk level by using leveraged ETFs. If, on the other hand, you strongly believe that the market will go into a strong decline, then you should buy ProShares’ Short ETF funds, which enable the opposite leverage effect, as their value rises higher,

How is the ProShares ETF different from other ETFs?

ProShares ETFs differ from most other ETFs on the market, especially in that they are leveraged in their rules, allowing for significantly more sophisticated and higher-risk investment strategies compared to traditional ETFs. Leverage can, however, be deceptive when misused, so we recommend that you familiarize yourself with your investment target very carefully.

When used correctly, leveraged ETF funds enable significantly higher return potential than traditional ETF funds, as they offer a return multiplied by the amount of their leverage factor when compared to the direct return of the target. Even though this sounds very good, it is also good to keep in mind that if the underlying asset or index happens to fall, the loss will also be multiple at that time, also when it is multiplied by the leverage factor of the ETF fund in question.

ProShares leveraged ETFs:

Unlike many other ETFs, ProShares leveraged ETFs also allow you to invest against the market in the form of Short ETFs. These Short ETFs in question are equipped with the opposite leverage effect, as their value rises the higher the value of the ETF’s target falls. So, if you believe that the value of an investment target will fall sharply, ProShares’ Short ETFs allow you to benefit from this price change as well.

ProShares ETF funds, therefore, offer a flexible and adaptable option to increase leverage with an eye on both bull and bear markets, whichever you want to emphasize in your strategy. By using them, you can also use relatively small amounts to bring strong diversification with the help of the leverage effect. Thus, you can use leverage to either increase or decrease the risk level of your investment portfolio, whether you want to emphasize low-risk or high-return potential.

Unlike many other ETFs, ProShares ETFs are particularly suitable for short-term trading due to their leverage. If you want to use these ETF funds in your long-term investment strategy, you should keep in mind the high loss potential brought by the leverage effect, which may quickly eat up the returns you have already achieved with several consecutive down days.

ProShares ETF Expenses?

ProShares ETFs are quite low-cost ETF funds, especially when compared to traditional funds. Compared to other ETF funds. ProShares ETF funds are not directly particularly cheap, but on the other hand, they are not significantly more expensive either. However, the costs of ProShares ETFs do not come out of nowhere, as ProShares ETFs operate with debt leverage. Which in turn brings expenses from debt to the ETF itself, which other ETF funds may not have to pay. With this in mind, the costs of ProShares ETFs are quite affordable relative to the leverage they provide.

The Best ProShares ETFs:

Then we get to the main question itself, and the topic of the article itself: What is the best ProShares ETF? Finding the best ProShares ETF is by no means as easy as it might seem at first glance. To find the best ProShares ETF, we spent quite a lot of time comparing them, emphasizing not only their historical return and the return on invested capital achieved so far but also, of course. The current distribution of holdings and the composition of the portfolio, as well as prospects.

As mentioned, the set of the three best ProShares ETFs we have presented is therefore not necessarily suitable for everyone, for every portfolio, but people should also interpret and apply the recommendations we give. If you want a ProShares ETF that invests in a specific industry in your portfolio, don’t be afraid to research it and possibly invest in it, even if we haven’t listed it below. Your criteria and goals may be very different from the above-mentioned review criteria we use. With which we aim to offer our readers the most general recommendations that you can apply yourself to suit your investment strategy.

Three ProShares ETFs:

The three Best ProShares ETFs listed below in this paragraph are our selections from the top five ProShares ETFs we have already listed. However, we will tell about these selected three ETFs much deeper than the surface, opening up their operation and the investment strategies they use, as well as their suitability for different purposes. With the help of these summaries, we aim to provide all our readers with more detailed information on which to base their own investment decisions. For each ETF, we also give clear practical examples of what kind of investment portfolios and strategies they could best fit into, and in which contexts they are most commonly used.

TQQQ – ProShares UltraPro QQQ:

This leveraged ETF aims to generate three times the return of its underlying asset. This triple return is always measured daily and is calculated according to the daily return and value change. Since the interest-to-interest effect is further enhanced in leveraged investments. This means that if the investment in the QT ETF is longer than one day, the potential return or loss may increase significantly more than the intraday change.

QT invests in a triple-leveraged:

TQQQ invests in a triple-leveraged index that invests weightedly in the 100 largest non-financial NASDAQ companies. Although, in theory, QT is evenly distributed among several large companies across sectors, an investment strategy emphasizing the largest companies in this context means a rather large emphasis on technology. Namely, the technology sector has grown at a fast pace and has grown a large number of companies whose market value is larger than traditional industry. Which are therefore weighted targets in this index.

QT is suitable as an investment target if your goal is to bring a higher-risk product with a higher return potential, which is, however. Spread across several large companies. For example, assuming a strong rise through the index, you may want to use the leverage factor enabled by this ETF. But spread your investment through the index, reducing your risk compared to single-company leveraged instruments.

SSO – Proshares Ultra S&P 500:

Like other ProShares ETFs, there is also the SSO ProShares Ultra S&P 500 Leveraged ETF. The SSO ETF invests with a double leverage factor in its target asset, the Standard & Poor’s 500 index, which includes the 500 largest companies operating in the United States. With the help of this ETF fund, you are therefore able to achieve the same broad leveraged diversification in some of the most well-known and largest large companies in the United States and the world.

Similar to TQQQ, the operation of SSO’s leverage factor is also determined based on the daily change. Because of this, it is a rather high-risk product for long-term investing, which is why we recommend it above all as a tactical tool for short-term active trading, where the leverage may enable a higher-than-usual profit potential.

UDOW – ProShares UltraPro Dow30:

UDOW ProShares UltraPro Dow30 offers a heavily leveraged alternative to investing in the Dow Jones Industrial Average. It enables a triple leverage factor compared to the target asset. Like many other leveraged ProShares ETFs, the ProShares UltraPro Dow30 bases its leverage on intraday changes. This means that a continuous change in value for several days in one direction or another causes exponential effects. As the leverage factor emphasizes the operation of the interest-for-interest phenomenon even more. Since the phenomenon works for both profits and losses, we recommend planning the use of leveraged products carefully.

The Dow Jones Industrial Index includes the 30 largest companies listed on US stock exchanges. It is one of the oldest indexes still published in the United States. Offering diversification to the largest large-cap companies in the market. Due to its leverage factor, it is recommended to use UDOW, especially for short-term trading, where it is possible to increase the profit potential thanks to the leverage factor. However, it is quite a high-risk product when used as a long-term passive target. And it is not recommended for that purpose.