ProShares Ultra MSCI Brazil Capped (UBR)

ETF ProShares Ultra MSCI Brazil Capped (UBRZ)

Profile:

Target Sector: Emerging Markets (Brazil) Asset Allocation: 100% Equities Investment Strategy: Seeks daily investment results that, before fees and expenses, are 2x the daily performance of the MSCI Brazil 25/50 Index (USD).

Objective:

The ETF aims to provide investors with leveraged exposure to the performance of large and mid-cap Brazilian equities represented by the MSCI Brazil 25/50 Index.

Issuer:

ProShares

• Reputation and Reliability: Established in 2006, ProShares is a leading provider of exchange-traded funds (ETFs) with over $80 billion in assets under management.
• Management: The company boasts a team of experienced professionals with expertise in ETF design and portfolio management.

Market Share:

UBRZ currently holds a market share of approximately 0.3% within the Brazil Equity ETF segment.

Total Net Assets:

$47.72 million (as of November 13, 2023)

Moat:

• Leveraged Exposure: UBRZ provides 2x leverage to the underlying index, potentially amplifying gains for investors.
• Specific Market Focus: UBRZ offers targeted exposure to the Brazilian equity market, allowing investors to capture opportunities in a specific geographic region.

Financial Performance:

• Year-to-date: +22.73% (as of November 13, 2023)
• 1-year: +25.71%
• 3-year: +37.54%

Benchmark Comparison:

UBRZ has outperformed the MSCI Brazil 25/50 Index (USD) in all three timeframes mentioned above.

Growth Trajectory:

The Brazilian equity market exhibits potential for growth, driven by factors such as economic recovery and reforms. UBRZ, with its leverage, could potentially amplify gains from such growth.

Liquidity:

• Average Trading Volume: 31,679 shares (as of November 13, 2023)
• Bid-Ask Spread: 0.03%

Market Dynamics:

• Economic Indicators: Brazil's economic recovery and ongoing reforms influence investor sentiment towards its equities.
• Sector Growth Prospects: The Brazilian economy encompasses diverse sectors like energy, mining, and financials, offering potential for growth.
• Current Market Conditions: Global economic trends and investor risk appetite impact the performance of emerging market equities like Brazil.

Competitors:

• iShares MSCI Brazil Small-Cap ETF (EWZS): 0.08% market share
• SPDR S&P Brazil ETF (BRAZ): 0.18% market share
• VanEck Vectors Brazil Small-Cap ETF (BRF): 0.05% market share

Expense Ratio:

0.95%

Investment Approach and Strategy:

• Strategy: UBRZ tracks the MSCI Brazil 25/50 Index with 2x leverage.
• Composition: The ETF primarily holds large and mid-cap Brazilian equities.

Key Points:

• Leveraged exposure to the Brazilian equity market
• Potential for amplified gains
• Specific geographic focus
• Higher volatility compared to non-leveraged Brazilian equity ETFs

Risks:

• Volatility: UBRZ's leveraged nature exposes investors to potential for amplified losses as well as gains.
• Market Risk: The Brazilian equity market can be susceptible to economic and political instability, potentially impacting UBRZ's performance.
• Counterparty Risk: UBRZ relies on swap agreements to achieve its leveraged exposure, introducing counterparty risk if the swap provider fails to meet its obligations.

Who Should Consider Investing:

• Investors seeking leveraged exposure to the Brazilian equity market
• Investors with a bullish outlook on Brazil's economic prospects
• Investors comfortable with higher volatility

Fundamental Rating Based on AI:

8/10

UBRZ boasts a strong track record of outperformance and offers potential for amplified gains due to its leverage. However, its higher volatility and exposure to specific market risks necessitate careful consideration by investors.

Resources and Disclaimers:

• ProShares UBRZ webpage: https://www.proshares.com/etf/ubrz
• Morningstar UBRZ profile: https://www.morningstar.com/etfs/arcx/ubrz/quote
• SEC filings for ProShares: https://www.sec.gov/edgar/searchedgar/companysearch.html?company=proshares

This information is provided for informational purposes only and should not be considered as investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.