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Higher Returns with Lower Risk: The SectorSurfer Advantage

UDOW ProShares UltraPro Dow30

Category: Leveraged Equities

Inception: 2010-02-09 Issuer: Proshare Advisors LLC
Net Assets
$641M
Expense Ratio
N/A
# of Holdings
37
Average Daily Volume
2.61M

Fund Overview

The ProShares UltraPro Dow30 (UDOW) is a leveraged ETF designed to deliver three times (3x) the daily performance of the Dow Jones Industrial Average (DJIA). This ETF is ideal for investors seeking amplified exposure to the blue-chip stocks that comprise the DJIA. UDOW achieves its leveraged returns through the use of financial derivatives, including futures contracts and swaps. It is important to note that UDOW is intended for short-term trading due to the effects of compounding and leverage decay over longer periods. The fund is rebalanced daily to maintain its target leverage ratio.
Asset Class
Equity
Industry
N/A
Annual Dividend Rate
Smart Beta
No
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - N/A
Currency Hedged
No
Portfolio Turnover
42 %
Dividend Date

Why Invest in the UDOW ETF?

Potential Benefits

  • Provides 3x leveraged daily exposure to the DJIA, allowing for amplified returns in bullish market conditions.
  • Offers a cost-effective way to gain leveraged exposure without using margin or options.
  • Diversified exposure to 30 large-cap, blue-chip U.S. companies across various sectors.
  • Liquidity is generally high, with tight bid-ask spreads, making it suitable for active traders.
  • Rebalanced daily to maintain target leverage, reducing tracking error.

Potential Risks

  • Leverage amplifies losses as well as gains, making UDOW highly volatile and risky.
  • Daily reset mechanism can lead to significant compounding effects, which may erode returns over time.
  • Not suitable for long-term buy-and-hold investors due to leverage decay.
  • Performance may deviate from 3x the DJIA over periods longer than a single day.
  • Exposure to derivatives introduces counterparty risk.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
-3.92% -8.83% +35.46% +138.35% +92.98% +17.98% +25.89% +28.33% +4516.36%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 +4.2% -0.5% -16.2% +21.8% +7.7% +6.8% 0.0% +3.3% -4.5% - - -
2025 +13.3% -5.3% -13.1% -13.8% +11.2% +12.7% -0.6% +9.1% +4.9% +6.6% +0.1% +1.7%
2024 +2.5% +5.9% +5.7% -15.2% +6.5% +2.5% +12.4% +4.2% +4.8% -4.9% +23.4% -16.0%
2023 +7.6% -12.7% +4.7% +6.7% -10.3% +12.7% +9.6% -7.4% -11.0% -5.3% +28.1% +14.2%
2022 -10.1% -10.2% +6.4% -15.1% -0.6% -19.8% +20.4% -12.0% -25.5% +45.2% +16.7% -13.0%
2021 -6.2% +10.2% +21.4% +7.9% +6.2% -0.6% +3.6% +4.0% -12.6% +18.3% -10.7% +16.6%
2020 -3.3% -27.0% -52.2% +31.2% +12.7% +1.7% +7.2% +24.6% -7.3% -13.9% +39.7% +9.6%
2019 +21.8% +11.7% -0.4% +7.2% -18.7% +22.6% +2.7% -5.9% +5.9% +0.7% +12.4% +4.5%
2018 +17.7% -13.9% -11.1% -0.9% +3.3% -2.1% +14.2% +6.9% +5.5% -15.8% +4.4% -25.5%
2017 +1.2% +16.1% -2.4% +3.9% +1.8% +5.9% +7.2% +1.0% +6.1% +13.5% +12.4% +5.9%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
UNH UNITEDHEALTH GROUP INC 8.1 %
GS THE GOLDMAN SACHS GROUP INC 6.8 %
MSFT MICROSOFT CORP 5.2 %
HD THE HOME DEPOT INC 4.9 %
SHW SHERWIN-WILLIAMS CO 4.6 %
V VISA INC CLASS A 4.5 %
MCD MCDONALD'S CORP 4.4 %
AMGN AMGEN INC 4.1 %
CAT CATERPILLAR INC 4.0 %
CRM SALESFORCE INC 3.6 %
Top 10 holdings shown, out of 37 total holdings.

Related ETFs: UDOW vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
DDM ProShares Ultra Dow30 N/A $416.1M 32 Equity
DIA SPDR Dow Jones Industrial Average ETF Trust 0.16 % $36.9B 31 Equity
DOG ProShares Short Dow30 0.95 % $141.1M 1 Equity
DXD ProShares UltraShort Dow30 N/A $59.8M 2 Equity
PSQ ProShares Short QQQ 0.95 % $571.9M 5 Equity
QLD ProShares Ultra QQQ N/A $6.5B 108 Equity
SDOW ProShares UltraPro Short Dow30 N/A $232M 2 Equity
SPXL Direxion Daily S&P 500 Bull 3X Shares N/A $4B 507 Equity
SSO ProShares Ultra S&P 500 N/A $4.8B 510 Equity
UDOW ProShares UltraPro Dow30 N/A $641M 37 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

UDOW seeks to deliver 3x the daily return of the DJIA by using a combination of financial derivatives such as futures contracts, swaps, and other leveraged instruments. The fund does not invest directly in the underlying stocks of the DJIA but instead uses these derivatives to achieve its stated objective. The ETF is rebalanced daily to maintain its target leverage ratio, which helps minimize tracking error. Due to the daily reset, UDOW is best suited for short-term trading rather than long-term investing.

Frequently Asked Questions

Is UDOW suitable for long-term investing?

No, UDOW is designed for short-term trading due to the effects of leverage decay and daily rebalancing, which can erode returns over time.

How does UDOW achieve its 3x leverage?

UDOW uses derivatives such as futures contracts and swaps to amplify its exposure to the DJIA, aiming for 3x the daily return.

What are the main risks of investing in UDOW?

The primary risks include high volatility, leverage decay, and the potential for significant losses, especially in volatile or declining markets.

How does UDOW compare to non-leveraged Dow ETFs like DIA?

UDOW offers 3x the daily return of the DJIA, while DIA provides 1x exposure. UDOW is much riskier and more volatile than DIA.

Industry Overview

The ProShares UltraPro Dow30 (UDOW) is part of the leveraged and inverse ETF category, which caters to traders and investors looking for amplified exposure to major indices like the DJIA. Leveraged ETFs such as UDOW are popular among short-term traders who seek to capitalize on market movements. The DJIA itself is a price-weighted index comprising 30 large-cap U.S. companies, often seen as a barometer of the broader market. Investing in leveraged ETFs requires a solid understanding of the risks involved, including volatility and compounding effects.

Alternative Comparison

Compared to its non-leveraged counterpart, the SPDR Dow Jones Industrial Average ETF (DIA), UDOW offers amplified returns but comes with significantly higher risk and volatility. Another related fund, the ProShares Ultra Dow30 (DDM), provides 2x leveraged exposure, making it less volatile than UDOW but still unsuitable for long-term holding. Investors seeking inverse exposure might consider the ProShares UltraPro Short Dow30 (SDOW), which delivers -3x the daily return of the DJIA. UDOW stands out for its higher leverage, but this also means greater potential for losses.

Issuer Overview

ProShares is a leading provider of leveraged and inverse ETFs, offering a wide range of products designed for tactical trading and hedging strategies. The firm is known for its expertise in derivatives-based strategies and has a strong track record in the ETF space. ProShares' leveraged ETFs, including UDOW, are widely used by active traders and institutional investors.

Conclusion

The ProShares UltraPro Dow30 (UDOW) is a high-risk, high-reward ETF designed for experienced traders seeking leveraged exposure to the DJIA. Its daily reset mechanism and use of derivatives make it unsuitable for long-term investors but potentially valuable for short-term tactical plays. Investors should carefully consider their risk tolerance and investment horizon before trading UDOW.

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