A.I.M. Users Bulletin Board

[lrp42]

Re: Ultra-Long, Ultra-Short Sector ETFs.

I was wondering if any of you have invested in any of these 200% long, or the 200% short sector ETFs from Proshares. The reason I am asking was that I have been researching the real estate sector ETFs. They have fallen a good bit since the spring. I thought this might be a good time to stick my little toe in the water with this sector. I came across these sector funds on steroids from Proshares.

The ultra-long REIT fund’s symbol is URE. It has dropped from a high of $75.26 in February, 2007 down to $48.87. It has very thin trading volume. Its average 10 day average volume is only 9,388 shares and its 90 day average volume is only 6,050 shares.

http://stockcharts.com/h-sc/ui?s=URE&p=D&yr=0&mn=6&dy=0&id=p67432984663

Its mirror counterpart is the ultra-short REIT fund. Its symbol is SRS. It has experienced some good trading volume. Its average 10 day volume is 266,122 shares and its 90 average volume is 187,063. It looks like the hedge funds might have had a big part in its heavy trading volume. It has a low of $63.54 in February, 2007 and a recent high of $94.59.

http://stockcharts.com/h-sc/ui?s=SRS&p=D&yr=0&mn=6&dy=0&id=p67432984663

These look like they might be good AIM candidates because of the volatility inherent in each fund. They might also be good “pairs” candidates. I haven’t checked any other sector ETFs from Proshares, but I am sure I will find similar type volatility movements.

Has anyone invested in any of these “ultra” sector ETFs yet? If so, what do you think of them?

Thanks,

Ray