ProShares Ultra MSCI Brazil Capped (UBR)UBR

ProShares Ultra MSCI Brazil Capped (BRAZ) ETF Summary

Profile:

• Target Sector: Brazilian Equities
• Asset Allocation: 2x leveraged exposure to the MSCI Brazil 25/50 Index
• Investment Strategy: Daily leveraged exposure through swap agreements and other derivative instruments

Objective:

• To provide 2x the daily performance of the MSCI Brazil 25/50 Index

Issuer:

• Name: ProShares
• Reputation and Reliability: ProShares is a well-established and reputable ETF issuer with over $60 billion in assets under management.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in leveraged and inverse investment strategies.

Market Share:

• BRAZ holds a market share of approximately 3.4% within the leveraged Brazil ETF category.

Total Net Assets:

• BRAZ has approximately $173 million in assets under management as of Oct 27, 2023.

Moat:

• Leverage: BRAZ's 2x leverage amplifies gains and losses compared to the underlying index, making it attractive for short-term, tactical trading.
• Fee Structure: BRAZ's expense ratio of 0.95% is relatively low compared to other leveraged Brazil ETFs.

Financial Performance:

• BRAZ has historically outperformed the MSCI Brazil 25/50 Index, but also exhibits higher volatility.
• Year-to-Date Performance (as of Oct 27, 2023): 14.42%
• 1-Year Performance: 34.31%
• 3-Year Performance: 15.53%

Benchmark Comparison:

• BRAZ has outperformed the MSCI Brazil 25/50 Index by a significant margin over the past year.

Growth Trajectory:

• The long-term growth prospects for the Brazilian market are positive, driven by factors such as economic diversification and increasing consumer spending.

Liquidity:

• Average Trading Volume: 48,000 shares per day
• Bid-Ask Spread: 0.04%

Market Dynamics:

• Key factors affecting BRAZ include the Brazilian economic outlook, global commodity prices, and investor sentiment.

Competitors:

• Direxion Daily Brazil Bull 3X Shares (BRZU) - Market Share: 4.2%
• VelocityShares 3x Long Brazil ETF (BRXL) - Market Share: 1.8%

Expense Ratio:

• 0.95%

Investment Approach and Strategy:

• Strategy: 2x leveraged exposure to the MSCI Brazil 25/50 Index through swap agreements.
• Composition: Primarily holds swap agreements on the index, with a small allocation to cash and other assets.

Key Points:

• BRAZ offers leveraged exposure to the Brazilian stock market, potentially amplifying gains and losses.
• The ETF is actively managed and seeks to outperform its benchmark.
• Historically, BRAZ has outperformed the MSCI Brazil 25/50 Index, but with higher volatility.
• The ETF has a relatively low expense ratio compared to other leveraged Brazil ETFs.

Risks:

• Volatility: BRAZ exhibits higher volatility than the underlying index, amplifying potential losses.
• Market Risk: The ETF is exposed to the risks of the Brazilian market, including economic instability and political uncertainty.
• Leverage Risk: The use of leverage can significantly magnify gains and losses.

Who Should Consider Investing:

• Experienced investors with a high tolerance for risk and a short-term investment horizon.
• Investors seeking leveraged exposure to the Brazilian stock market.

Fundamental Rating Based on AI:

7.5/10

BRAZ scores favorably in terms of its performance, fees, and liquidity. However, the high volatility and leverage risk associated with the ETF warrant caution.

Resources and Disclaimers:

• This summary is based on information from the following sources:
  • ProShares website
  • ETF.com
  • Yahoo Finance
• This information is provided for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.