ProShares Ultra Basic Materials (UYM)

All Comments on UYM

  • commenter
    ProHFAnalyst
    Sep 30 11:31 AM
    ProShares UltraShort and UltraLong ETFs [view article]
    UYG what am I not getting here? It says it tracks the DJUSFN index, with 2x the return. DJUSFN is up 6.07% today. So UYG should be up 12.14%. However as we speak UYG is up a measly 2.2%. Reply
  • commenter
    Winston
    Aug 12 07:20 AM
    The Case Against Leveraged ETFs [view article]
    Excelent article! By far the best that I've seen on the subject.

    I'm in the same position as Benjamin Washington above and have been invested in these type products in my IRAs for about five years on the same theory that he stated. Can anyone come up with a counter argument?

    Note that IRAs (1) have tax deferred status, so capital gains distributions don't matter (2) prohibit margin borrowing and most options strategies.

    As someone who has a very long time horizon for my money, it seems to me that a beta of 1.0 that I would get from an index fund is simply too conservative, but IRA rules prohibit me from increasing my systemic risk to what I consider to be an appropriate level.     Reply
  • commenter
    cc
    Jul 18 04:21 PM
    ProShares UltraShort and UltraLong ETFs [view article]
    I wish you would look into QID and why it is never and I mean NEVER 2X the inverse.. I checked out Rydex shares and all their inverse etf's perform grea on a daily basis.. THIS piece of $@^$ is so bad.. Check out what the underlying was when this was trading 57.. THe ndx is lower now and this should be trading close 49 to 52,, Do we have any recourse against Proshares?

    Reply
  • commenter
    Ames
    Tiedeman
    Jul 15 07:22 PM
    My Website
    ProShares ETFs: Why Volume Trading Makes a Difference [view article]
    John, That is a great question. I do not have the answer, but I suspect they are using some kind of derivative to produce this. I have found that the Ultra's are fantastic to trade. Good luck. Reply
  • commenter
    Ames
    Tiedeman
    Jul 15 07:20 PM
    My Website
    ProShares UltraShort and UltraLong ETFs [view article]
    QID and QLD have been very reliable at 2x.


     Reply
  • commenter
    Franck
    Jul 15 05:06 PM
    ProShares UltraShort and UltraLong ETFs [view article]
    Thanks for the article.

    I think the Proshares ETF are not reliable.

    Let's take the example of FXP. They are not double short but only 1.7 short.

    The prices are very inconsistent.

    For example:

    I bought FXP on March 6th at 99. That day, FXI closed 135.66.

    On March 24th, FXP was at 106.92 and FXI 128.35 (same as today).

    Today FXP closed at 87.98 and FXI closed at 128.66

     Reply
  • commenter
    Ames
    Tiedeman
    Jul 13 10:59 PM
    My Website
    ProShares UltraShort and UltraLong ETFs [view article]
    Great list. Thanks for the data. Reply
  • commenter
    johnthebear
    Jun 30 06:41 PM
    ProShares ETFs: Why Volume Trading Makes a Difference [view article]
    John the bear wrote on June 28:

    I am amazed that there is a way to get a 2:1 ratio against an index, and I admit to investing without knowing all the facts.

    I would appreciate it if you could explain how the process works so that I will have greater confidence in the future as my profit keeps expanding my holdings.

    Please try to find an answer for me.

    Have you asked ProShares to explain it to you?     Reply
  • commenter
    adan
    Jun 28 06:22 PM
    My Website
    ProShares ETFs: Why Volume Trading Makes a Difference [view article]
    really good info, very interesting, thanks! Reply
  • commenter
    johnthebear
    Jun 28 09:02 AM
    ProShares ETFs: Why Volume Trading Makes a Difference [view article]
    I invest in ultra short FXP (China) and SRS (Dow Jones RE index) and have done very well with both. Trades have executed quickly and I chart each in Yahoo and include the FXI and IYR to compare trends as to which is moving up faster.

    I am amazed that there is a way to get a 2:1 ratio against an index, and I admit to investing without knowing all the facts.

    I would appreciate it if you could explain how the process works so that I will have greater confidence in the future as my profit keeps expanding my holdings.

    I appreciate ProShares and the opportunity they have provided to the small investor.     Reply
  • commenter
    Paulo
    May 20 11:13 PM
    Leveraged ETFs: Buy and Holders Beware, These Are for Active Traders [view article]
    So if you are not sure financials are dead (and I am not either) you can use leveraged ETFs to protect your position(s). Even though leveraged ETFs are far from perfect you can still arrange things so as not to take a significant loss.
    This is one of the things the above article may be trying to get across.
    Reply
  • commenter
    themicrokid
    May 20 08:38 PM
    My Website
    Leveraged ETFs: Buy and Holders Beware, These Are for Active Traders [view article]
    I am not so sure, financials are dead. They seem to have a way to keep making money, probably because everybody has to use them. I am less certain, if a bottom is in. There seems to be a water torture way to try to find a new set of problems.

    One of the most interesting investment methodologies I know of is the statistical work Robert Drach has done. He has data back to 1977 validating his timing model to beat the averages. He is heavy in financial's. At this web site, with data back to 1995, you can see his model portfolio changes every day. www.pbs.org/nbr/site/r.../

    He has much better results on his subscription timing model.

    And every time he goes long, everybody says, it's different this time.

    ********** Switching Gears********

    Leveraged funds have a couple of other characteristics. 1) They are
    not an investment in equities, but in futures and other derivatives. Therefore, they do not always meet their 2x objective, even while in a trend and occasionally beat it. 2) On some of them the spreads and the intraday hysteria may make them significantly off their tracking index.

    I did a quick study on QQQQ, QLD, and QID to see some real cases.

    I picked 5/19/2008 as the closing date and assumed purchases on three dates of an equal dollar amount. The first two dates were picked without paying attention to the market. The third was picked to assure the QQQQ's were high, to see, the effect of the QID's.

    One issue with this study is leveraged ETF's are a new phenomena. I could have performed this with Rydex mutual funds and went back much farther.

    Purchase 8/1/2006 a few weeks after the launch of QLD.
    Gain 5/19/2008 QQQQ 37%, QLD 59%, QID -46%

    If you were long QLD, you are much happier than long QQQQ. If you were long QID, you were out to lunch.

    Purchase 7/31/2007 a year later.
    Gain 5/19/2008 QQQQ 5%, QLD 1%, QID -16%

    Spinning wheels, unless you were in the bearish QID.

    Purchase 10/26/2007 chosen to have a fairly high QQQQ
    Gain 5/19/2008 QQQQ -8%, QLD -20%, QID 9%

    Only QID would have you happy and you would be much happier, if you had bailed from it on March 10, 2008. Gain 5/19/2008 QQQQ -23%, QLD -44%, QID 65%

    This suggests, if you can play horseshoes with tops and bottoms, you can make yourself very happy with leveraged ETF's.

    All these percentages are adjusted for dividend payouts. Yes, even leveraged ETF's may pay out dividends at times.

    I write about topics such as this and other things at themicrokid.blogspot.c.../




     Reply
  • commenter
    Paulo
    May 20 06:51 PM
    Leveraged ETFs: Buy and Holders Beware, These Are for Active Traders [view article]
    Gary is right in pointing out that leveraged ETFs can work well for protecting positions without having to sell.
    The size of a leveraged ETF position bought initially to short can be reduced as the market changes, to the changed objective of protecting positions. And for the rigorous, a stop loss at would prevent any significant loss on the remainder of the holding.
    Buy and hold is definitely not the way to go.
    Reply
  • commenter
    DaveW
    May 20 02:58 PM
    Leveraged ETFs: Buy and Holders Beware, These Are for Active Traders [view article]
    Regarding these leveraged tools and the individual investor. Like me, everyone has and will make mistakes betting on short-term futures from time to time. Here is one of my mistakes and how I corrected it, I think it's working out pretty well so far. Back in mid-April I made a bet on commodities dropping by going short using the ProShares UltraShort Basic Materials ETF (SMN). I know, idiotic move. Commodities were in fact not done going skyward. When my position in SMN reached -7.0% I made a move to hedge my mistake from becoming a double-digit mistake. I purchased an equal weighting of the Ultra Basic Materials UYM as insurance from deeper losses. Since that move my SMN position is now about -15% and my UYM is about +10%. Thus, my overall loss is actually stabilized now at around -5%. My plan is to wait for true signs of a commodity correction, sell UYM to capture that gain and ride SMN upward.

    I would postulate that this technique could be used with these leveraged tools anytime there exists opposite pairings ( e.g. UYG vs. SKF, UKW vs. SDK, SMN vs. UYM, etc.), thus providing the individual investor a way to hedge/insure a smaller mistake from becoming an overwhelming mistake.     Reply
  • commenter
    DaveW
    May 20 01:31 PM
    Leveraged ETFs: Buy and Holders Beware, These Are for Active Traders [view article]
    kavier,
    It seems, to me anyway, that the financial sector is much more negative than positive. I"m in the inverse fund SKF for that very reason. My bet is on both the poor outlook of financials and a likely short term down-turn. I'll be out quick if I smell a hint of optimism in the next day or two. But think of this, if the markets don't correct soon and go on further into positive territory do you really think financials warrent real enthusiasm? I believe their golden age is gone, investors are finally realizing that these stocks just won't bring the long-term profits they once did. Your money may better be spent where enthusiasm does currently reside: mid-cap growth stocks outperformed other equity styles in April with no reason for that to change anytime soon. For example, today:

    seekingalpha.com/artic...

    If you are feeling optimistic and are looking for leveraged growth you might consider the leveraged Mid-Cap Growth ETF (UKW) mentioned above.     Reply
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