UYG: To Trade On The Financial Sector, Not To Invest In It

Leveraged ETFs like ProShares Ultra Financials ETF are designed for short-term trading, not long-term holding, due to the erosion of time value in derivatives. UYG aims to deliver 2x the daily performance of the S&P Financial Select Sector Index, using derivatives rather than holding double the shares. Daily resets in leveraged ETFs can lead to value loss over time, making them unsuitable for long-term investments, especially in volatile markets.

Seeking Alpha • Apr 28, 2025

UYG: A Leveraged Bet On Financials For Upcoming Deregulation

The ProShares Ultra Financials ETF offers 2x daily leverage on the S&P Financial Select Sector Index, ideal for bullish short-term traders. UYG's 0.95% expense ratio is competitive for leveraged ETFs, but higher than non-leveraged sector ETFs, impacting returns in flat markets. Leveraged exposure can amplify gains and losses, making UYG suitable for high-risk tolerance and short-term strategies, not long-term holding.

Seeking Alpha • Nov 19, 2024

UYG: Value-Weighted ETFs Will Work As Banking Becomes A Two-Tier System

Banking is consolidating, with no more place for the little guys - at least not a meaningful one. A value-weighted ETF tracker of financials makes sense as the big guys see outsized benefits from cheap consolidations. Note that the value-add of being a large institution in taking on shaky smaller regional banks is massive, so forced selling is phenomenal for the large banks.

Seeking Alpha • Jun 2, 2023

UYG Is An Ambiguous Proposition, Unwise Due To It Being A Leveraged ETF

UYG is a leveraged ETF that covers a bunch of financial stocks whose exposures, while probably net positive, are mixed to the more stubborn than expected inflation. Leveraged ETFs carry a lot of risks and don't make sense for sectors that may require a buy-and-hold logic.

Seeking Alpha • Feb 19, 2023

ProShares Makes Benchmark Changes to 23 ETFs

With a new year comes the opportunity to make changes, and that's what ProShares has done by swapping benchmarks on 23 ETFs, largely focused on their inverse and leveraged strategies.

ETF Trends • Jan 6, 2023

ProShares and ProFunds Announce Benchmark Changes for 53 Geared Sector Funds

BETHESDA, Md.--( BUSINESS WIRE )--ProShares and ProFunds, premier providers of leveraged and inverse funds, announced plans to change the underlying indices for a combined 53 sector ETFs and mutual funds to S&P Select Indices.

Business Wire • Jan 5, 2023

Some ETFs Deliver Cap Gains Hit

Most—but not all—ETFs have distributed minimal to no capital gains.

ETFcom • Jan 3, 2022

Play Soaring Financial Sector With These Leveraged ETFs

The financial sector has been soaring lately on rising yields with many stocks hitting new highs.

Zacks Investment Research • Oct 14, 2021

Financials Look Ripe For A Reversal

The financials and banking stocks have been some of the best performing of the reflation trade since the second half of 2020. On the whole, we know banks like to make their profits by lending long term and borrowing short term.

Seeking Alpha • Jun 14, 2021

U.S. Banks Beat Street. Will Their Winning Ways Continue?

U.S. big banks Q1 earnings beat Street. Will their winning ways continue?

Seeking Alpha • Apr 28, 2021