Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the ProShares UltraPro Short S&P500 (SPXU 1.90%) have received the dreaded one-star ranking.
With that in mind, let's take a closer look at SPXU, and see what CAPS investors are saying about the ETF right now.
SPXU facts
|
Inception |
June 2009 |
|
Total Net Assets |
$580.7 million |
|
Investment Approach |
Seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the S&P 500. The index is a float-adjusted, market capitalization-weighted index of 500 U.S. operating companies and real estate investment trusts selected through a process that factors criteria such as liquidity, price, market capitalization, and financial viability. |
|
Expense Ratio |
0.93% |
|
Year-to-Date / 1-Year / 3-Year Return |
(30.5%) / (46.5%) / (42.9%) |
|
Alternatives |
ProShares Short S&P500 ProShares UltraShort QQQ |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 51% of the 459 members who have rated SPXU believe the ETF will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star TerryHogan, succinctly summed up the SPXU bear case for our community:
If there is anything other than a dramatic S&P plunge, this baby is basically mathematically guaranteed to underperform. Even with a long side-ways trend, expenses and volatility degradation will kill this sucker. This is just a short-term hold for people (read: suckers) that think they can time the market.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
