1-Star ETFs Poised to Plunge: ProShares UltraShort 7-10 Year Treasury?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ProShares UltraShort 7-10 Year Treasury (NYSE: PST  ) has received the dreaded one-star ranking.

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

PST facts

   
Inception April 2008
Total Net Assets $313.7 million
Investment Approach Seeks daily investment results that correspond to twice the inverse (-2x) of the daily performance of the Barclays U.S. 7-10 Year Treasury Bond Index. The index includes all publicly issued U.S. Treasury securities that have a remaining maturity of 7-10 years, are non-convertible, are denominated in U.S. dollars, are rated investment grade, are fixed rate, and have more than $250 million par outstanding.
Expense Ratio 0.95%
Year-to-Date / 1-Year / 3-Year Return (10.0%) / (13.1%) / (19.5%)
Alternatives

ProShares UltraShort 20+ Year Treasury

ProShares Short 20+ Year Treasury

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

On CAPS, 52% of the 82 All-Star members who have rated the ProShares ETF believe it will underperform the S&P 500 going forward.

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

While I'm not exactly keen on treasuries from these interest rate levels, I'm a firm believer in the crappiness of 2X leverage ETFs. They all degrade over time. Also, expense ratio is likely to rise at the end of Sept. 2012 which will lead to further underperformance.

If you want market-th umping 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 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.

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: 2035179, ~/Articles/ArticleHandler.aspx, 9/2/2014 1:24:31 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...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement