1-Star ETFs Poised to Plunge: ProShares UltraPro Short Financials?

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ProShares UltraPro Short Financials (NYS: FINZ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at this ProShares ETF and see what CAPS investors are saying about the ETF right now.

FINZfacts

InceptionJuly 2012
Total Net Assets$3.4 million
Investment ApproachSeeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the Dow Jones U.S. Financials Index.
Expense Ratio0.95%
AlternativesProShares UltraShort Financials
Direxion Daily Financial Bear 3X Shares
ProShares Short S&P 500

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 56 members who have rated the ETF believe it will underperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star bbmaven, succinctly summed up the bear case for our community:

This is a new triple short ETF issued by ProShares on financials. Unless I am missing something, this is likely to have all of the flaws of other ETF's that rebalance daily in an effort to provide triple the inverse movement of the financial index.

If you believe financials are due to crash, it may be worth playing with a green thumb for the time frame you are projecting the crash for. However, in the long run, even if you are right, you will lose unless you cash out fairly quickly. For those not interested in timing the market, just short this and sit back -- it will be a plus score for you in the long run.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but it won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 1-Star ETFs Poised to Plunge: ProShares UltraPro Short Financials? originally appeared on Fool.com.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners