This article describes an exchange traded fund that tracks an index, commodity, currency, or varied basket of securites. View articles referencing this fund.

 

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Marco Villacorta

The Proshares Ultra S&P500 (SSO)

Profile:

Proshares Ultra S&P500 (SSO) is an Exchange Traded Fund (ETF) that seeks to mimic the daily investment results, before fees and expenses, corresponding to twice the daily performance of the S&P 500 Index. In other words, if this underlying index declines by 1% for the day, the NAV of SSO will more or less decline by 2%, before fees and expenses. In the same manner, if this underlying index rises by 1% for the day, the NAV of SSO rises by 2% as well.

It's important to remember that leveraged ETFs like SSO are rebalanced each trading day relative to the index they track. So (for example) when someone says "The S&P 500 is up 7% this week," that doesn't tell you very much at all about the performance of SSO or any other leveraged ETF that tracks that index. Nor is this the kind of tracking error that 'evens out' over time; in most circumstances, these divergences will widen over time.

Inception Date: 06/19/06

Investment Strategy:

The principal investment strategies of this fund include:

• investing in equity securities and financial instruments (including derivatives) that the fund managers believe will produce twice the daily return of the S&P 500 Index.
• committing at least 80% of its net assets to equity securities or financial instruments that have similar economic characteristics contained in the Index.
• employing leveraged investment techniques or sampling techniques in seeking its investment objective.
• assets not invested in equity securities or financial instruments are invested in debt securities or money market instruments.
• concentrating its investments in a particular industry to approximately the same extent as the Index

Annual Fund Operating Expenses:

Top 10 Holdings: (As of February 26, 2009)

Reference:

Company Website: http://www.proshares.com