Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



1-Star ETFs Poised to Plunge: Short Dow30 ProShares?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ProShares Short Dow30 (NYSE: DOG  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at ProShares Short Dow30 and see what CAPS investors are saying about the ETF right now.

ProShares Short Dow30 facts

Inception June 2006
Total Net Assets $270.8 million
Investment Approach Seeks daily investment results that correspond to the inverse (opposite) of the daily performance of the Dow Jones Industrial Average Index.
Expense Ratio 0.95%
1-Year, 3-Year, and 5-Year Returns (20.4%); (15.8%); (8.1%)
Alternatives ProShares UltraShort S&P 500
ProShares Short S&P 500
ProShares UltraShort Dow30

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

On CAPS, 79% of the 215 All-Star members who have rated ProShares Short Dow30 believe the ETF will underperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star TerryHogan, offered a straightforward explanation for his underperform call:

Simple bet on the Dow. Plus, this is a bet on volatility, as these ETFs are set to deliver a return that is the inverse of the DOW for a single day. [O]ver time, they won't match it if there's any volatility at all.

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 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 may not 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.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2023167, ~/Articles/ArticleHandler.aspx, 10/24/2016 12:47:19 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,217.62 71.91 0.40%
S&P 500 2,148.32 7.16 0.33%
NASD 5,298.66 41.26 0.78%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes