More Triple-Leverage ETF Launches (TQQQ, UDOW, UMDD, URTY, SQQQ, SDOW, SMDD, SRTY)

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Usually we think of Direxion in the world of triple-leverage and triple-inverse funds, but there are others.  And now there are more…  ProFunds Group is launching new Triple Leverage ETFs and Triple-Inverse ETFs.  For triple leverage up, it is offering tracking returns for the NASDAQ-100, DJIA, S&P Mid-Cap 400, and the Russell 2000.  Its Triple-inverse launches are on the same indexes.  ProShares already has triple-leverage and triple-inverse S&P 500 Index ETFs, so this should make it have a large spread of the major US equity indexes for stock traders.

New +3x UltraPro ProShares

UltraPro QQQ (NASDAQ: TQQQ) tracks the NASDAQ-100 Index with a correlation of +300% Daily

UltraPro Dow30 (NYSE: UDOW) tracks the DJIA with a correlation of +300% Daily

UltraPro MidCap400 (NYSE: UMDD) tracks the S&P MidCap 400 Index with a correlation of +300% Daily

UltraPro Russell2000 (NYSE: URTY) tracks the Russell 2000 Index with a correlation of +300% Daily

New -3x UltraPro ProShares

UltraPro Short QQQ (NASDAQ: SQQQ) tracks NASDAQ-100 Index with an inverse correlation at -300% Daily

UltraPro Short Dow30 (NYSE: SDOW) tracks the DJIA with an invesrse correlation of -300% Daily

UltraPro Short MidCap400 (NYSE: SMDD) tracks the S&P MidCap 400 Index with an inverse correlations of -300% Daily.

UltraPro Short Russell2000 (NYSE: SRTY) tracks the Russell 2000 Index with an inverse correlation of -300% Daily.

By now you likely know this.  But we still want to make a reminder.  These triple-leverage and inverse ETF products often have severe tracking error compared to their underlying index moves.  Technically, the triple-leverage and triple-inverse ETFs can go less than $0.00, which is why we saw reverse splits in some triple-ETF products last year.

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JON C. OGG
FEBRUARY 11, 2010

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