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ProShares Ultra Cloud Computing (SKYU)

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Upturn Advisory Summary
10/23/2025: SKYU (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit 64% | Avg. Invested days 43 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() | Upturn Advisory Performance | ETF Returns Performance |
Key Highlights
Volume (30-day avg) - | Beta 2.32 | 52 Weeks Range 17.38 - 43.73 | Updated Date 06/30/2025 |
52 Weeks Range 17.38 - 43.73 | Updated Date 06/30/2025 |
Upturn AI SWOT
ProShares Ultra Cloud Computing
ETF Overview
Overview
ProShares Ultra Cloud Computing (SKYU) is a leveraged ETF that seeks to deliver twice (2x) the daily performance of the ISE CTA Cloud Computing Index. It offers investors a way to amplify the returns of cloud computing stocks.
Reputation and Reliability
ProShares is a well-known issuer specializing in leveraged and inverse ETFs, generally considered reliable.
Management Expertise
ProShares has experience managing leveraged ETFs; however, these products require careful monitoring due to their inherent risks.
Investment Objective
Goal
To seek daily investment results, before fees and expenses, that correspond to twice (2x) the daily performance of the ISE CTA Cloud Computing Index.
Investment Approach and Strategy
Strategy: Leveraged: Aims to achieve 2x the daily return of the ISE CTA Cloud Computing Index.
Composition Primarily invests in financial instruments (swap agreements, futures contracts) that provide leveraged exposure to cloud computing stocks.
Market Position
Market Share: SKYU's market share is relatively small within the broader technology ETF sector.
Total Net Assets (AUM): 29960000
Competitors
Key Competitors
- WCLD
- SKYY
- XT
- CLOU
Competitive Landscape
The competitive landscape includes broader cloud computing ETFs and sector-specific funds. SKYU differentiates itself through its leveraged exposure. The leveraged aspect can amplify gains but also significantly increase losses compared to non-leveraged competitors. SKYU is a niche player compared to WCLD and SKYY.
Financial Performance
Historical Performance: Historical performance is highly dependent on the daily performance of the ISE CTA Cloud Computing Index, magnified by a factor of two.
Benchmark Comparison: The ETF's performance should theoretically be twice that of its benchmark, but this is before fees and expenses, and only holds true for a single day. Over longer periods, compounding effects can significantly deviate from the 2x target.
Expense Ratio: 0.95
Liquidity
Average Trading Volume
The average trading volume for SKYU is moderate, which could lead to wider bid-ask spreads at times.
Bid-Ask Spread
The bid-ask spread can vary depending on market conditions and trading volume, but is typically wider than more liquid ETFs.
Market Dynamics
Market Environment Factors
Factors influencing SKYU include the growth of the cloud computing industry, overall economic conditions, and investor sentiment towards technology stocks.
Growth Trajectory
SKYU's growth depends heavily on the underlying cloud computing sector's expansion and investor appetite for leveraged products. Frequent rebalancing can affect long-term performance.
Moat and Competitive Advantages
Competitive Edge
SKYU's primary advantage is its 2x leverage, offering amplified returns compared to non-leveraged cloud computing ETFs. This provides a distinct advantage for investors seeking aggressive short-term gains. However, this leverage also magnifies losses, making it unsuitable for risk-averse investors. Its niche focus differentiates it from broader market ETFs. Its expense ratio can be considered a competitive disadvantage.
Risk Analysis
Volatility
SKYU exhibits high volatility due to its leveraged nature, making it sensitive to short-term market fluctuations.
Market Risk
Risks include fluctuations in the cloud computing sector, potential tracking error, and the inherent risks associated with leveraged investments, including the potential for significant losses, especially over longer time periods due to compounding effects.
Investor Profile
Ideal Investor Profile
SKYU is best suited for sophisticated investors with a high-risk tolerance who understand the complexities of leveraged ETFs and are seeking short-term, aggressive returns.
Market Risk
This ETF is primarily suitable for active traders or those with a short-term outlook, not long-term investors or passive index followers.
Summary
ProShares Ultra Cloud Computing (SKYU) is a leveraged ETF designed for short-term tactical investment in the cloud computing sector. It aims to deliver twice the daily performance of its underlying index, making it suitable for investors seeking amplified gains, but only for short holding periods. The ETF is best suited for sophisticated traders with a high-risk tolerance. However, it's critical to understand its potential for both magnified gains and losses, especially due to the compounding effects of daily leverage reset.
Peer Comparison
Sources and Disclaimers
Data Sources:
- ProShares official website
- ETF.com
- Morningstar
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. ETF performance can vary, and past performance is not indicative of future results. Leveraged ETFs are not suitable for all investors.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ProShares Ultra Cloud Computing
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The index is comprised of companies classified as cloud computing companies by the CTA. The fund will obtain leveraged exposure to at least 80% of its total assets in component securities of the index or in instruments with similar economic characteristics. It is non-diversified.

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