what is a dow index leverage etf

Dow index leverage ETFs are financial instruments that amplify the returns of the Dow Jones Industrial Average (DJIA) either positively or negatively. These ETFs use leverage to increase their exposure to the DJIA, allowing investors to gain larger returns (or losses) than if they had invested directly in the index. The leverage ratio determines the extent of this amplification. 1. **ProShares UltraPro Dow30 (UDOW)**: This ETF has a leverage ratio of 3, which means it amplifies the DJIA's returns by a factor of 3. If the DJIA rises, UDOW will increase its value by 3 times the percentage change of the DJIA. Conversely, if the DJIA falls, UDOW will decrease in value at a similar amplified rate. 2. **ProShares Ultra Dow30 (DDM)**: With a leverage ratio of 2, DDM amplifies the DJIA's returns by a factor of 2. This ETF is designed to increase its value at twice the rate of the DJIA's performance. 3. **ProShares UltraShort Dow30 (DXD)**: This ETF has a leverage ratio of -2, which means it amplifies the DJIA's returns negatively. If the DJIA rises, DXD will decrease in value at twice the rate of the percentage change of the DJIA. Conversely, if the DJIA falls, DXD will increase in value at twice the rate of the index's decline. 4. **ProShares UltraPro Short Dow30 (SDOW)**: With a leverage ratio of -3, SDOW amplifies the DJIA's returns negatively by a factor of 3. Similar to DXD, but with an even higher leverage ratio, SDOW will decrease in value significantly if the DJIA rises, while increasing in value at three times the rate of the index's decline if it falls. ETFs with Benchmark is Dow Jones Industrial Average; Leverage Ratio is > 1 or < -1 |code|etf code|etf name|Last Price|Last Change|Benchmark|Leverage Ratio|absolute(Leverage Ratio)|market_code| |---|---|---|---|---|---|---|---|---| |UDOW|UDOW.P|ProShares UltraPro Dow30|96.44|2.139377|Dow Jones Industrial Average|3|3|169| |DDM|DDM.P|ProShares Ultra Dow30|99.41|1.407732|Dow Jones Industrial Average|2|2|169| |DXD|DXD.P|ProShares UltraShort Dow30|23.885|-1.505155|Dow Jones Industrial Average|-2|2|169| |SDOW|SDOW.P|ProShares UltraPro Short Dow30|40.585|-2.134073|Dow Jones Industrial Average|-3|3|169|