ProShares Ultra Gold ETF rated Sell due to high volatility and underperformance against moving averages.
The ProShares Ultra Gold (UGL) ETF, which aims to deliver twice the daily return of gold, is rated a Sell by analyst Ivan Gaddari. The fund has high volatility at 58%, pays no dividends, and currently trades below its 20-, 50-, and 200-day moving averages, indicating weakness. Gold prices recently fell to a 10-week low influenced by a strong dollar, rising 10-year yields, and a September CPI of 3.7%. Investors should note that UGL is designed for short-term trading due to its daily reset mechanism and carries a 0.95% expense ratio with about $704 million in assets.
The ProShares Ultra Gold (UGL) ETF, which aims to deliver twice the daily return of gold, is rated a Sell by analyst Ivan Gaddari. The fund has high volatility at 58%, pays no dividends, and currently trades below its 20-, 50-, and 200-day moving averages, indicating weakness. Gold prices recently fell to a 10-week low influenced by a strong dollar, rising 10-year yields, and a September CPI of 3.7%. Investors should note that UGL is designed for short-term trading due to its daily reset mechanism and carries a 0.95% expense ratio with about $704 million in assets.
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