1-Star ETFs Poised to Plunge: ProShares Ultra Gold?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ProShares Ultra Gold (NYSE: UGL  ) has received the dreaded one-star ranking.

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

ProShares Ultra Gold facts

Inception December 2008
Total Net Assets $372.7 million
Investment Approach Seeks to provide daily investment results that correspond to twice (200%) the daily performance of gold bullion as measured by the U.S. dollar p.m. fixing price for delivery in London
Expense Ratio 0.95%
Year-to-Date / 1-Year / 3-Year Returns 17.3% / (16.0%) / 33.9%
Alternatives PowerShares DB Gold Double Long ETN
SPDR Gold Shares
iShares Gold Trust

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

On CAPS, 42% of the 251 members who have rated ProShares Ultra Gold believe the ETF will underperform the S&P 500 going forward.

Earlier this year, one of those Fools, goeagles2013, succinctly summed up the bear case for our community:

This call might hurt over the next few weeks, months, or even years. But I'd rather own shares of a company that produce something of real value to society than a shiny metal. Inflation hedge aside, there are better places to put your money, and when these doomsday prophecies disappear, so will gold at [$1,700] an ounce.

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 access it now.

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

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2018233, ~/Articles/ArticleHandler.aspx, 4/17/2014 2:37:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement