 The
ProShares Ultra MSCI Emerging Markets ETF (EET) seeks to track twice
(200%) the daily performance of the MSCI Emerging Markets Index, which
is a free float-adjusted market capitalization weighted index designed
to measure equity market performance of emerging markets. EET uses
leverage to amplify returns and is designed for traders and investors
with a bullish outlook on the emerging markets.
The MSCI
Emerging Markets Index is a benchmark that includes stocks from 27
emerging market countries such as China, India, Brazil, Russia, and
Mexico, among others. The index covers about 85% of the free
float-adjusted market capitalization in each country and is widely
used by investors as a gauge for emerging market performance.
As an ETF, EET provides investors with the ability to access a
diversified portfolio of emerging market stocks without having to buy
individual stocks themselves. EET is traded on the NYSE Arca exchange
and charges an expense ratio of 0.95%. However, as a leveraged ETF,
EET can experience higher volatility and magnify losses if the market
moves against its underlying index. Therefore, it is important for
investors to carefully consider their risk tolerance and investment
goals before investing in EET or any other leveraged ETF.
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