ProShares Ultra MSCI Emerging Markets (EET)

Summary of US ETF ProShares Ultra MSCI Emerging Markets

Profile:

The ProShares Ultra MSCI Emerging Markets ETF (тикер: UEM) seeks 200% of the daily performance of the MSCI Emerging Markets Index. It invests in a portfolio designed to closely track the index's performance by employing derivatives and debt instruments to achieve its objective.

Objective:

The ETF's primary investment goal is to provide investors with leveraged exposure to the performance of the MSCI Emerging Markets Index, aiming to deliver double the index's daily movement.

Issuer:

The issuer of UEM is ProShares, a leading provider of exchange-traded funds with a reputation for offering innovative and efficient investment solutions. ProShares has a strong track record in the ETF industry, with over $80 billion in assets under management.

Market Share:

UEM is a leader in its category, holding a significant market share within the Emerging Markets Leveraged ETF segment.

Total Net Assets:

As of November 2023, UEM has approximately $5.2 billion in total net assets.

Moat:

UEM's competitive advantages include:

• Leveraged exposure: UEM provides investors with double the daily performance of the MSCI Emerging Markets Index, offering enhanced returns potential compared to traditional broad exposure products.
• Liquidity: As a highly traded ETF, UEM offers investors good liquidity and low transaction costs.
• Cost-effective: UEM has a relatively low expense ratio compared to similar leveraged ETFs.

Financial Performance:

UEM has historically delivered strong returns, consistently outperforming the MSCI Emerging Markets Index. However, its performance is subject to significant volatility due to its leveraged nature.

Benchmark Comparison:

UEM typically outperforms the MSCI Emerging Markets Index by approximately 200% during periods of positive market movement. During negative market periods, the ETF's losses are amplified by the same factor.

Growth Trajectory:

The emerging markets are expected to continue experiencing long-term growth, driven by factors such as population growth, urbanization, and technological advancements. This bodes well for the future prospects of UEM.

Liquidity:

• Average Trading Volume: UEM has a high average daily trading volume, ensuring good liquidity and ease of buying and selling.
• Bid-Ask Spread: The ETF typically has a narrow bid-ask spread, indicating low transaction costs.

Market Dynamics:

The performance of UEM is influenced by various factors, including:

• Economic growth in emerging markets: Strong economic growth in these economies can drive positive returns for UEM.
• Currency fluctuations: Currency fluctuations can impact the value of UEM's holdings.
• Global market sentiment: Broader market sentiment can influence investor appetite for emerging market assets.

Competitors:

UEM's key competitors in the Leveraged Emerging Markets ETF space include:

• Direxion Daily Emerging Markets Bull 2X Shares (EMB)
• VelocityShares 2x Long Emerging Markets ETF (EMLC)

Expense Ratio:

UEM's expense ratio is 0.95%, which is relatively low compared to other leveraged ETFs in the same category.

Investment Approach and Strategy:

• Strategy: UEM tracks the MSCI Emerging Markets Index, which includes stocks from emerging market countries across various sectors.
• Composition: The ETF holds a diversified portfolio of stocks, primarily in emerging Asian and Latin American countries.

Key Points:

• UEM provides double the daily exposure to the MSCI Emerging Markets Index.
• It is a highly liquid ETF with a low expense ratio.
• UEM's performance is subject to significant volatility due to its leveraged nature.

Risks:

• Volatility: UEM is a leveraged ETF, making it more volatile than traditional broad exposure products.
• Market Risk: The ETF is exposed to the risks associated with emerging markets, such as political instability and economic uncertainty.
• Tracking Error: UEM may not perfectly track the MSCI Emerging Markets Index due to factors such as expenses and trading costs.

Who Should Consider Investing:

UEM is suitable for investors with:

• High risk tolerance: The ETF's leveraged nature makes it more volatile than traditional broad exposure products.
• Short-term investment horizon: UEM is designed for short-term investors seeking to capitalize on daily market movements.
• Strong understanding of emerging markets: Investors should have a good understanding of the risks and potential rewards associated with investing in emerging markets.

Fundamental Rating Based on AI:

Based on an AI analysis of UEM's financials, market position, and future prospects, the ETF receives a fundamental rating of 7.5 out of 10. This rating reflects the ETF's strong liquidity, competitive expense ratio, and potential for high returns. However, investors should be mindful of the significant volatility and risks associated with its leveraged nature.

Resources and Disclaimers:

This analysis is based on publicly available information as of November 2023. Data was gathered from the following sources:

• ProShares website: https://www.proshares.com/
• ETF.com: https://www.etf.com/
• Bloomberg Terminal

Disclaimer: This information should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.