ProShares UltraShort ascents over 7 percent despite modest market dip


USD 22.90  0.0039  0.017%   

In this story I am going to address all ProShares UltraShort shareholders. We will look into why despite regular market tumult, the longer-term fundamental drivers of the fund are still sound. Is ProShares UltraShort valuation justified? Here I will also cover 2020 perspective on the current valuation of the entity to give you a better outlook on taking a possible position in this etf. What is ProShares UltraShort chance of financial distress for July 2020?
Published over a year ago
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ProShares UltraShort is OVERVALUED at 10.85 per share with modest projections ahead. The entity dividends can provide a clue to the current valuation of the etf. ProShares UltraShort one year expected dividend income is about $0.07 per share. Lets now check ProShares UltraShort Number of Employees. Based on recorded statements ProShares UltraShort SmallCap60 is currently employing 10.0 people. This is much higher than that of the ProShares family, and significantly higher than that of Trading--Inverse Equity category, The Number of Employees for all etfs is notably lower than the firm.
We determine the current worth of Ultrashort Smallcap600 ETF using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this etf, attempts to find the value of Ultrashort Smallcap600 based exclusively on its fundamental and basic technical indicators. By analyzing Ultrashort Smallcap600's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Ultrashort Smallcap600's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ultrashort Smallcap600. We calculate exposure to Ultrashort Smallcap600's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ultrashort Smallcap600's related companies.

Ultrashort Smallcap600 Investment Alerts

Ultrashort investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Ultrashort Smallcap600 ETF performance across your portfolios.Please check all investment alerts for Ultrashort

Ultrashort Smallcap600 Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Ultrashort value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ultrashort Smallcap600 competition to find correlations between indicators driving the intrinsic value of Ultrashort.

Sector Allocation (%)

Exchange-Traded Funds use many different techniques to achieve diversification. One of the ways Ultrashort Smallcap600 ETF is managing risk is by picking assets from different sectors and across various asset classes. It helps to ensure that returns are uncorrelated, and risk is spread across the underlying asset classes and industries. Within the same asset class, diversification can be achieved by investing in various investment styles through cross-sector allocation. Below map breaks down Ultrashort Smallcap600 sector allocation.

Is Ultrashort Smallcap600 valued correctly by the market?

The firm has a beta of -2.5298. Let's try to break down what ProShares's beta means in this case. The returns on MARKET and ProShares UltraShort are completely uncorrelated. The beta indicator helps investors understand whether ProShares UltraShort moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if ProShares deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. ProShares UltraShort maintains number of employees of 10.


Our Take On ProShares UltraShort Investment

While many of the other players under its sector industry are still a little expensive, even after the recent corrections, ProShares UltraShort may offer a potential longer-term growth to investors. In closing, as of 24th of June 2020, our research shows that ProShares UltraShort is slightly risky investment opportunity with above average probability of distress in the next two years. From a slightly different view, the entity crrently appears to be overvalued. Our final 30 days buy-sell advice on the fund is Strong Sell. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your ProShares UltraShort holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ProShares UltraShort.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Ultrashort Smallcap600 ETF. Please refer to our Terms of Use for any information regarding our disclosure principles.

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