ProShares UltraShort MSCI Emerging Markets (EEV)EEV

ETF ProShares UltraShort MSCI Emerging Markets Overview

Profile:

• Target Sector: Emerging markets
• Asset Allocation: Shorting stocks in emerging markets
• Investment Strategy: Inversely tracks the MSCI Emerging Markets Index, aiming to deliver daily returns that are -2x the return of the benchmark index

Objective:

• Generate short-term returns that are opposite to the performance of the MSCI Emerging Markets Index

Issuer:

• ProShares:
  • Reputation: Leading provider of ETFs with over $70 billion in assets under management
  • Reliability: Established track record and commitment to investor transparency
  • Management: Experienced investment team with expertise in managing leveraged and inverse products

Market Share:

• Holds over 50% of the inverse emerging markets ETF market share

Total Net Assets:

• Approximately $450 million (as of November 14, 2023)

Moat:

• First-mover advantage in the inverse emerging markets ETF space
• Strong brand recognition and distribution network
• Experienced management team

Financial Performance:

• Historical performance has achieved its objective of delivering returns opposite to the benchmark index

Benchmark Comparison:

• Outperforms the MSCI Emerging Markets Index in periods of declining market performance
• Underperforms the index in periods of rising markets

Growth Trajectory:

• Dependent on overall market volatility and investor sentiment towards emerging markets
• Potential for growth as investors increasingly seek short-term hedging strategies

Liquidity:

• High average daily trading volume, ensuring easy entry and exit
• Tight bid-ask spread, minimizing transaction costs

Market Dynamics:

• Affected by factors like global economic growth, geopolitical events, and emerging market specific risks

Competitors:

• Direxion Daily MSCI Emerging Markets Bear 2X Shares (EDZ)
• VelocityShares Daily Emerging Markets Inverse 2X VIX Short ETN (EVD)

Expense Ratio:

• 0.95%

Investment Approach and Strategy:

• Tracks the MSCI Emerging Markets Index inversely using swaps and other derivatives
• Composition: Primarily short exposure to equities within the MSCI Emerging Markets Index

Key Points:

• Provides short-term exposure to declining emerging markets
• High liquidity and tight bid-ask spread
• Experienced management team and reputable issuer

Risks:

• High volatility, leading to significant potential losses
• Subject to market risks associated with emerging markets
• Inverse performance amplifies losses when the underlying index rises

Who Should Consider Investing:

• Short-term traders looking to hedge against declining emerging markets
• Investors seeking leveraged exposure to negative market performance

Fundamental Rating Based on AI (1-10):

7.5

Justification: The ETF benefits from a strong brand, experienced management, and high liquidity. Its performance aligns with its objective, making it suitable for short-term hedging strategies. However, the high volatility and exposure to emerging market risks require careful consideration for long-term investors.

Resources:

• ProShares website: https://www.proshares.com/
• ETF.com: https://www.etf.com/etfanalysis/proshares-ultrashort-msci-emerging-markets-etf-see
• Yahoo Finance: https://finance.yahoo.com/quote/EEV/

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.