UBRProShares Ultra MSCI Brazil Capped
UBR Fund Description
UBR provides daily 2x exposure to a market-cap-weighted index comprising large- and midcap companies operating in Brazil, capturing approximately 85% of the Brazilian equity market.
UBR Factset Analytics Insight
UBR is an aggressive bet on the top end of the Brazilian stock market. It's also an expensive one-day leveraged bet thanks to the fund's poor liquidity. The fund promises to provide 200% of the daily performance of the MSCI Brazil 25/50 Index, which is an imperfect take on the Brazilian market due to modifications needed for a RIC-compliant portfolio. The daily reset distinction is critical, since the fund can make no promises of the effective leverage factor when UBR is held for longer than a day. This is not unique to UBR—all leveraged and inverse funds with daily resets fall victim to the effects of compounding over holding periods that extend past one trading day. As such, UBR is designed to be a tactical trading vehicle, which makes its high fee a tertiary consideration. Unfortunately, its utility as a trading tool is significantly diminished by the fund's modest assets, meager volume, and wide spreads.
UBR CHARTS AND PERFORMANCE
UBR Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of UBR. UBR is rated a 5 out of 5.