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Amplifying Returns with ProShares Ultra S&P 500 ETF: A Leveraged Investment Strategy
ByAinvest
Wednesday, Jul 16, 2025 1:42 pm ET1min read
The ProShares Ultra S&P 500 ETF (SSO) is a leveraged investment strategy that provides traders with 2x the daily performance of the S&P 500 (SPX). SSO is designed to reflect daily performance, making it a suitable option for traders seeking amplified returns over the S&P 500.
The ProShares Ultra S&P 500 ETF (SSO) is a leveraged investment strategy that provides traders with 2x the daily performance of the S&P 500 (SPX). This ETF is designed to reflect daily performance, making it a suitable option for traders seeking amplified returns over the S&P 500.The SSO ETF holds both the equity constituents of the SPX as well as index swaps and futures to achieve its 2x daily performance target. Roughly 123% of the portfolio’s assets are in index swaps and futures, with 78.55% in equities. The fund aims to deliver 2x the performance of the S&P 500 within a day, though it does not guarantee this performance over longer periods [1].
One notable aspect of SSO is its liquidity. With $6.52 billion in assets under management and an average of 2.29 million shares changing hands daily, SSO offers ample liquidity for traders. This liquidity is essential for entering and exiting positions with minimal spread risk [1].
However, it is crucial to understand the risks associated with leveraged strategies. Because SSO aims to achieve its stated multiple on a daily basis, holding it beyond a single day can lead to skewed performance. This can result in significant value decay, especially during periods of consecutive downside risk [1].
In conclusion, the ProShares Ultra S&P 500 ETF (SSO) presents a leveraged trading opportunity for those seeking amplified daily returns over the S&P 500. However, traders should be aware of the risks and ensure they fully understand their risk profile before making an investment decision.
References:
[1] https://seekingalpha.com/article/4801683-sso-can-amplify-a-traders-returns-over-the-s-and-p-500
[2] https://finance.yahoo.com/quote/UPRO/
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