UDOW ProShares UltraPro Dow30
UDOW Fund Description
UDOW provides 3x leveraged exposure to the price-weighted Dow Jones Industrial Average, which includes 30 of the largest US companies.
UDOW Factset Analytics Insight
UDOW is a heavily levered bet on the Dow Jones Industrial Average, achieving 3x exposure to the index via futures contracts and other financial derivatives with counterparty risk. Like many levered funds, it delivers 3x exposure only for 1 day. Over longer periods, returns can stray from the intended 3x exposure to the DJIA, which means it doesn't pay to hold onto UDOW for long if the trend is not positive. The Dow is an under-diversified index of 30 companies that weights its constituents by an arbitrary statistic—price per share. However, the Dow's shortfalls are less salient in a levered, short-term product where diversification and weighting are less important. Trading costs, on the other hand, are very important to take into consideration. Don't jump in unless you fully understand the relative risks and rewards of levered vehicles.
UDOW Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of UDOW. UDOW is rated a 5 out of 5.