 The
Ultra S&P500 2X ETF (SSO) is an exchange-traded fund (ETF) that seeks
to provide investors with leveraged exposure to the US large-cap
equity market. The ETF's objective is to provide twice the daily
performance of the S&P 500 Index.
SSO invests in derivatives
such as futures contracts and swap agreements to gain leveraged
exposure to the US large-cap equity market, 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 SSO ETF has a net
asset value (NAV) of approximately $7.7 billion and holds a portfolio
of derivatives contracts. The ETF's expense ratio is 0.90%, which is
relatively high compared to other ETFs.
SSO has a track record
of providing investors with leveraged exposure to the US large-cap
equity market, while seeking to amplify returns. Since its inception
in 2006, the fund has provided investors with an annualized return of
around 22% (as of March 23, 2023).
Overall, the Ultra S&P500 2X
ETF (SSO) could be a good investment option for investors looking to
gain leveraged exposure to the US large-cap equity market, 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 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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