So at least 46% of the index is big oil companies (major integrated oil & gas). When you look at how that index is constructed you'll see that ExxonMobil Corp. Note that the actual price of oil is not mentioned. Component companies include oil drilling equipment and services, coal, oil companies-major, oil companies-secondary, pipelines, liquid, solid or gaseous fossil fuel producers and service companies." That index "measures the performance of the energy sector of the U.S. But the question about how DUG could be up while the price of oil was also up is answered by looking at what comprises DUG - the Dow Jones U.S. The article goes on to explain how & why this happens. However, ProShares' returns may be greater than or less than what you'd expect over longer periods. ProShares are designed to provide either 200%, -200% or -100% of index performance on a daily basis (before fees and expenses).Ī common misconception is that ProShares should also provide 200%, -200% or -100% of index performance over longer periods, such as a week, month or year. From the article "Understanding ProShares' Long-Term Performance" on ProShares' site: That "daily" part adds one complication to the picture. UltraShort Oil & Gas ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. A quick look at what DUG actually is gives the answer: He questioned how that ETF, which is the double inverse of oil & gas could be up for the day while oil was also up. One of the Fast Money guys mentioned the UltraShort Oil & Gas ProShares ETF (DUG) on a recent show. Know what's in your ETF and how the ETF is calculated I recommend Fidelity which has the best ETF research tools (ETF screeners, charting, third-party reports, etc) and overall experience for ETFs. To compare online brokers for trading ETFs, read our online broker guide and use the comparison tool.
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