2024-03-26 13:59:59 ET
Summary
- ProShares UltraPro Short S&P500 is a triple-leveraged, inverse ETF that aims to produce three times the negative daily return of the S&P 500.
- SPXU tends to lose value over time due to betting against an asset that generally rises in value and suffers from compounding losses.
- Historical data suggests that SPXU is only successful during periods of market chaos and downward momentum, making it an unreliable trading or investment vehicle.
One of the easiest ways to lose money over time is to leverage your bet against a beta-positive asset - that is, an investment that tends to rise in value over time for fundamental reasons. This is exactly what the ProShares UltraPro Short S&P500 ETF ( SPXU ) is designed to do....
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For further details see:
SPXU: A Risky Bet On Perfect Timing And Rare Luck