 The
Ultrapro Short Russell 2000 -3X ETF (RTY) is an exchange-traded fund
(ETF) that seeks to provide investors with inverse exposure to US
small-cap stocks included in the Russell 2000 Index, while also
seeking to amplify the returns of the underlying index. The ETF's
objective is to provide three times the inverse performance of the
Russell 2000 Index.
RTY invests in derivatives such as futures
contracts and swap agreements to gain inverse exposure to US small-cap
stocks included in the Russell 2000 Index, while also seeking to
provide amplified returns of the underlying index. The ETF's holdings
are selected based on factors such as liquidity and market
capitalization.
As of September 2021, the RTY ETF has a net
asset value (NAV) of approximately $225 million and holds a portfolio
of derivatives contracts. The ETF's expense ratio is 0.95%, which is
relatively high compared to other ETFs.
RTY has a track record
of providing investors with inverse exposure to US small-cap stocks
included in the Russell 2000 Index, while seeking to amplify returns.
Since its inception in 2010, the fund has provided investors with an
annualized return of around -32% (as of March 23, 2023).
Overall, the Ultrapro Short Russell 2000 -3X ETF (RTY) could be a good
investment option for investors looking to gain inverse exposure to US
small-cap stocks, while also seeking to amplify returns. However, as
with any investment, it is important to conduct thorough research and
consider factors such as risk tolerance, investment objectives, and
fees before making a decision. Additionally, investors should be aware
that investing in leveraged or inverse ETFs involves higher risks
compared to traditional ETFs, and that the ETF's performance may not
match its stated objective over the long term.
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