ETF Market Notes: New Triple Leveraged Funds from ProShares
If you thought the market for regular, non-leveraged exchange-traded funds was “en fuego”, then what can be said about the no less explosive growth in leveraged ETFs – including the eight (!) new triple-leveraged ETFs from ProShares.
The new 3x ETFs from ProShares include inverse leveraged funds, as well. Focused on the most popular, most liquid and widely traded markets in the Nasdaq 100, the Dow industrials, the S&P MidCap 400, and the Russell 2000, the new triple leveraged ETFs will provide new opportunities particularly for short term ETF traders.
The names and symbols of the new exchange-traded funds are listed below. Note that four of the new ETFs will be traded on the New York Stock Exchange ARCA and four will be traded on the NASDAQ.
ProShares UltraPro QQQ ETF ^TQQQ^
Based on the Nasdaq 100 Index
ProShares UltraPro Dow 30 ETF ^UDOW^
Based on the Dow industrials
ProShares UltraPro MidCap 400 ^UMDD^
Based on the S&P MidCap 400 Index
ProShares UltraPro Russell 2000 ETF ^URTY^
Based on the Russell 2000 Index
Inverse Triple Leveraged
ProShares UltraPro Short QQQ ETF ^SQQQ^
Based on the inverse of the Nasdaq 100 Index
ProShares UltraPro Short Dow 30 ^SDOW^
Based on the inverse of the Dow industrials
ProShares UltraPro Short MidCap 400 ETF ^SMDD^
Based on the inverse of the S&P MidCap 400 Index
ProShares UltraPro Short Russell 2000 ETF ^SRTY^
Based on the inverse of the Russell 2000 Index
These eight new triple leveraged exchange-traded are a major addition to ProShares previous 3x ETF products, which consisted of the ProShares UltraPro S&P 500 ETF ^UPRO^ and the ProShares UltraPro Short S&P 500 ETF ^SPXU^.
Note that that triple leveraged ETFs are for advanced traders who know and understand the potential risks and rewards of trading leveraged instruments. Leveraged ETFs are built for disciplined, short term traders looking to take advantage of short term edges and opportunities in the ETF market.
If you are interested in learning more about how to trade leveraged exchange-traded funds, including quantified, backtested trading strategies, click here.
David Penn is Editor in Chief at TradingMarkets.com.