UJB vs UYG

UJBBProShares Ultra High Yield

UYGAProShares Ultra Financials

In short

UJB Leverage, but on junk bonds instead of stocks. UJB aims for twice the daily move of the Markit iBoxx $ Liquid High Yield Index, a credit trade sitting in a category stuffed with 2x Nasdaq and 2x tech.

UYG Listed in January 2007, a year before the banking crash, UYG targets 2x the daily move of the financial stocks in the S&P 500. A veteran of the leveraged shelf, priced at 0.93% with no fee waiver propping that number up.

Stated mandate

UJB UJB seeks daily investment results, before fees and expenses, corresponding to twice the daily performance of the Markit iBoxx $ Liquid High Yield Index.

UYG UYG seeks pre-expense daily results equal to 2x the daily performance of the S&P Financial Select Sector Index. It is designed to provide magnified financials-sector exposure on a daily basis.

Why people hold it

• UJB The rare leveraged credit play: 2x the daily move of an index of dollar-denominated high yield corporate bonds, in a peer group dominated by stock-index leverage.proshares.com
• Trading since 2011, a long run for a leveraged bond fund, and coupons flow through on a quarterly distribution schedule.
• Fee is 0.95% net of a waiver through September 30, 2027, near the category median and level with stablemate DDM (0.95%), just above QLD (0.89%, net of a waiver through September 30, 2027).
• The index behind it holds only bonds rated BB+/Ba1 or lower and caps any single issuer at 3%, so the exposure is broad junk credit, not a handful of borrowers.proshares.com

• UYG One of the originals: on the tape since January 30, 2007, still running the same mandate of 2x the daily performance of the S&P Financial Select Sector Index.proshares.com
• At 0.93% with no waiver doing the work, it sits near the median fee of its leveraged peer group and level with sibling ROM (0.93%). QLD is 0.89%, but net of a waiver through September 30, 2027.
• The whole sector in one ticker: banks, insurers and capital-markets firms from the S&P 500, roughly 80 names, geared daily.proshares.com
• Stands in the top tier of the leveraged bull funds we grade, a group of close to a hundred tickers.

Worth knowing

• UJB Leverage resets every day. Hold longer and returns compound, so results over a stretch can differ from 2x the index's move over that same stretch, especially in choppy markets.proshares.com
• Gross expenses are 1.63%; the 0.95% net rate rests on a waiver running through September 30, 2027.
• Small fund, light trading next to the big equity Ultras, so spreads and order size carry more weight here.

• UYG The 2x target is a one-day target and resets each day. Over longer holds the result comes from compounding daily moves, and in choppy markets that can land well off twice the index's return for the period.proshares.com
• One sector, doubled. Financials move with rates, credit conditions and deal flow, and UYG amplifies that daily swing in both directions.
• It changes hands less than the headline leveraged funds, so the spread is worth a look before you place an order.

Full UJB profile⁠

Full UYG profile⁠