ProShares UltraPro S&P500 [UPRO] Stock Forecast

While the S&P 500 may gain in 2024 due to cooling in inflation, a less-hawkish Fed, AI investing momentum, a tech rally and an improvement in the corporate earnings, presidential election can cause uncertainty in the market.

RBC Capital Markets is expecting the S&P 500 to reach a historic high in the year 2024. But JPMorgan says S&P 500 will fall next year due to challenging macro backdrop.

The S&P 500 went into a new bullish trend in early November, with the SPDR S&P 500 ETF Trust NYSEARCA: SPY gapping up twice since its follow-through day on November 1. The index is up 7.73% in November.

ProShares UltraPro S&P500 ETF has experienced a bearish trend, losing 17.92% in the last month. The market correction in September 2023 and a bleak market outlook have contributed to UPRO's downward pressure. The leveraged ETF market faces headwinds such as high inflation, rising interest rates, and the reduction of the Federal Reserve's stimulus.

US equity markets remain near all-time highs despite mounting valuation and interest rate headwinds. Short interest in the SPDR® S&P 500 ETF Trust has fallen to its lowest level in decades, indicating widespread complacency.

Leveraged ETFs, such as UPRO and SPXL, are potentially valuable tools for portfolio construction, offering the ability to multiply daily S&P 500 gains by 3. The alphas of these funds fluctuate over time, closely tracking interest rates, due to borrowing used to generate leverage. High interest rates can cause a major drag on leveraged ETFs, e.g. 10x the magnitude of their expense ratios in 2023.

ProShares offers the popular UltraPro 3x S&P 500 leveraged ETF. Stock market concentration has been beneficial for leveraged ETF performance over the past 10–15 years. As risk adjusted metrics for funds like UPRO indicate, investors should exercise particular caution.

While the S&P500 is heading toward a bull market, following a 19.7% rally from the October 2022 lows, traders have raised their bearish bets on the index.

Though the latest Wall Street rally in narrow in nature, a run of strong economic data, such as an upbeat labor market, easing inflation, steady interest rates, and decent personal income, create a positive backdrop.

By Jeremy Schwartz, CFA Global Chief Investment Officer Follow Jeremy Schwartz @JeremyDSchwartz There is an important factor impacting the earnings of S&P 500 companies that also carries implications for potential diversification when investing abroad. Many believe a good reason to invest outside the U.S. is to obtain foreign currency exposure as an attractive diversifier.

ProShares UltraPro S&P500 is a US stock and trading under the symbol UPRO

ProShares UltraPro S&P500 stock price is $49.65 today.

Yes, ProShares UltraPro S&P500 is a publicly traded company.