Leveraged ETF Watchlist And Focus On SPXU History

Fred PiardInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryThe ProShares UltraPro Short S&P 500 ETF offers -3X daily leverage, making it popular among short-term traders but risky for long-term holding.SPXU is subject to significant drift and decay, especially in volatile markets, due to beta-slippage and compounding effects.SPXU's historical drift has fluctuated, with recent positive drift but a long-term risk of steep decay during whipsaw markets.For longer-term hedging, less leveraged bear ETFs like SDS or SH are safer alternatives; SPXU is best suited for tactical trading with precise signals.Quantitative Risk & Value members get exclusive access to our real-world portfolio. See all our investments here » Klaus Vedfelt/DigitalVision via Getty Images ProShares UltraPro Short S&P 500 ETF (SPXU) is designed to short the stock market for trading or hedging purposes. SPXU has $489 million in AUM (assets under management) and an average daily dollar trading volume of $284 million. ItThis article was written byFred Piard16.34K FollowersFollowFred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SDS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.