TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.
This year's stock market rebound has renewed investor confidence, but exchange-traded funds that are bullish on equities have a long way to go to make up the past year's losses.
S&P 500 index has advanced 10% in the past month, erasing a third of its decline in the past year. Even with double-digit returns, leveraged ETFs that bet on rising stocks have recouped only a fraction of their losses since May 2008.
Among the 50 leverage funds that are bullish, 20 have hit the market in the past year. The remaining 30 have lost 63%, on average, during that time.
Bullishly Leveraged ETFs Long Way From
Recouping 1 Year Losses
|ProShares Ultra Real Estate (URE) E+
|ProShares Ultra Financials (UYG) D-
|ProShares Ultra Basic Materials (UYM) E
|PowerShares DB Commodity Double Long ETN (DYY) U
|ProShares Ultra Oil & Gas (DIG) D
|ProShares Ultra Industrials (UXI) D
|ProShares Ultra Russell1000 Value (UVG) E
|ProShares Ultra Russell MidCap Value (UVU) E
|ProShares Ultra Russell MidCap Growth (UKW) D
|ProShares Ultra S&P500 (SSO) D
Source: TheStreet.com Ratings & Bloomberg 5/5/2009
For the month that ended May 5, the
ProShares Ultra Financials Fund
(UYG - Get Report)
returned 27% with its 200% leveraged bet on rebounds in
Bank of America
(BAC - Get Report)
(C - Get Report)
. However, the fund is still down 89% over the past year.