MENU
Go to the list of all blogs
Sergey Savastiouk's Avatar
published in Blogs
Apr 09, 2025

Pros and Cons of Leveraged Russell 2000 IWM ETFs: URTY vs. SRTY

Leveraged and inverse ETFs offer traders amplified exposure to market moves—both up and down—without requiring margin accounts. The Russell 2000 small‑cap index, known for its higher volatility and growth orientation, is a popular target. Below, we compare key 2× and 3× Russell 2000 ETFs, with a focus on ProShares UltraPro Russell2000 (URTY) and ProShares UltraPro Short Russell2000 (SRTY), alongside other leveraged plays.

Amplified Upside: Seeks 300% of the Russell 2000’s daily return—ideal in strong small‑cap rallies 
(According to ETFDB)
.

No Margin Needed: Provides 3× exposure without a margin account.

Focused on Growth: Small caps often outperform in early bull cycles, offering outsized gains.

Cons

Compounding Drag: Daily rebalancing can erode returns over volatile stretches; multi‑day returns may deviate from 3× the index 
.

High Expense: 0.95% fee can eat into profits, especially in choppy markets.

Volatility Risk: Losses also magnified—1% drop in the Russell 2000 yields a 3% loss in URTY.

SRTY (3× Bear)
Pros

Powerful Hedge: Seeks –300% of the Russell 2000’s daily return, enabling traders to profit from downturns or protect long portfolios 
(According to ETFDB)
.

High Liquidity: Solid AUM and trading volume relative to peers ensure tight spreads.

Cons

Volatility Decay: Similar compounding issues; in whippy markets, SRTY may underperform –3× the index over time 
.

Expense Ratio: 0.95% can erode hedging benefits if bearish moves are short‑lived.

Not Long‑Term: Designed for tactical use; holding through rebounds can generate steep losses.

Other Leveraged Russell 2000 ETFs
UWM (2× Bull): Lower leverage reduces compounding risk but still amplifies both gains and losses 
.

TWM (–2× Bear): Similar to SRTY but with half the leverage, offering a more moderate hedge.

TNA/TZA (3× Bull/Bear by Direxion): Comparable to URTY/SRTY but with higher expenses (1.14%) and larger AUM for TNA 
(According to ETFDB)
.

RWM (–1× Short): Simple inverse exposure; less risky than leveraged bears but offers smaller downside protection.

SMLL (2× Bull by Direxion): Niche fund with minimal AUM—liquidity risk for larger trades.

Key Considerations for Traders
Time Horizon: These funds are not buy‑and‑hold vehicles. Use them for daily or very short‑term trades.

Risk Management: Employ stop‑loss orders and position sizing to control drawdowns.

Monitoring: Frequent (daily) monitoring is essential to avoid compounding pitfalls.

Cost Impact: Higher expense ratios can materially affect returns in sideways markets.

Conclusion
For traders seeking tactical exposure to the Russell 2000, URTY and SRTY offer powerful, no‑margin alternatives to traditional leveraged or inverse positions. However, they carry significant compounding and volatility risks that demand disciplined risk management and daily oversight. Lower‑leverage ETFs like UWM or TWM, or the simple inverse RWM, may suit those seeking a milder approach. Ultimately, choosing the right ETF hinges on your market outlook, risk tolerance, and trading horizon—understanding these pros and cons is critical before deploying leveraged Russell 2000 ETFs in your portfolio.

Disclaimers and Limitation

Related Ticker: URTY, SRTY, IWM

Momentum Indicator for URTY turns positive, indicating new upward trend

URTY saw its Momentum Indicator move above the 0 level on April 22, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 90 similar instances where the indicator turned positive. In of the 90 cases, the stock moved higher in the following days. The odds of a move higher are at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where URTY's RSI Indicator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for URTY just turned positive on April 17, 2025. Looking at past instances where URTY's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where URTY advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where URTY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

URTY broke above its upper Bollinger Band on April 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for URTY entered a downward trend on April 09, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Notable companies

The most notable companies in this group are Abercrombie & Fitch Co (NYSE:ANF), Valaris Limited (NYSE:VAL), KB Home (NYSE:KBH), Transocean Ltd (NYSE:RIG), StoneCo Ltd (NASDAQ:STNE), Signet Jewelers Limited (NYSE:SIG), Goodyear Tire & Rubber Company (The) (NASDAQ:GT), Scorpio Tankers (NYSE:STNG), Shake Shack (NYSE:SHAK), California Resources Corp (NYSE:CRC).

Industry description

The investment seeks daily investment results that correspond to three times (3x) the daily performance of the Russell 2000® Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the Daily Target. The index is designed to measure the performance of the small-cap segment of the U.S. markets. Under normal circumstances, the fund will obtain leveraged exposure to at least 80% of its total assets in components of the index or in instruments with similar economic characteristics. The fund is non-diversified.

Market Cap

The average market capitalization across the ProShares UltraPro Russell2000 ETF is 1.6B. The market cap for tickers in the group ranges from 1.33M to 20.72B. SMMT holds the highest valuation in this group at 20.72B. The lowest valued company is BIOA at 1.33M.

High and low price notable news

The average weekly price growth across all stocks in the ProShares UltraPro Russell2000 ETF was 10%. For the same ETF, the average monthly price growth was -10%, and the average quarterly price growth was -35%. RGLS experienced the highest price growth at 184%, while WGS experienced the biggest fall at -44%.

Volume

The average weekly volume growth across all stocks in the ProShares UltraPro Russell2000 ETF was 12%. For the same stocks of the ETF, the average monthly volume growth was 13% and the average quarterly volume growth was 37%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 58
P/E Growth Rating: 59
Price Growth Rating: 63
SMR Rating: 69
Profit Risk Rating: 72
Seasonality Score: 20 (-100 ... +100)
View a ticker or compare two or three
URTY
Daily Signalchanged days ago
Gain/Loss if bought
Show more...
Ad is loading...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

Category Trading

Profile
Fundamentals
Details
Category
Trading--Leveraged Equity
Address
ProShares Trust7501 Wisconsin Avenue,Suite 1000Bethesda
Phone
N/A
Web
www.proshares.com
Ad is loading...
Paper wallets are extremely useful tools – beyond being one of the most popular and secure cold storage methods, they make it simple to transfer coins between owners.You can access the funds on your paper wallet by “sweeping” (or importing) them to either a live wallet (like Trezor or Exodus) or an exchange service (like Coinbase). Most services allow you to import them directly from your wallet’s private key, but there are two key exceptions.
"🚀 PHAXIAM Therapeutics SA Skyrockets +18.82%! Dive into this biotech penny stock's stellar week and the industry's broader movements. 📈🔬
Cisco Systems set to soar! 🚀 A.I. predicts +4% growth in the coming month. Is CSCO the next big move in your portfolio? 📈💰
#trading
The medical companies segment has experienced a notable increase in performance, recording a weekly gain of +3.53%. This sector encompasses companies involved in the production and supply of pharmaceuticals and essential medical products, catering to a broad spectrum of healthcare needs. Their product offerings include surgical apparel, gloves, hospital furniture, fluid management solutions, and specialized equipment for cosmetic and surgical procedures.
Tickeron launches AI-powered Stock Picker robots to assist hedge fund managers with sector rotation, growth-focused small-cap stocks, and strategic risk management. Using proprietary FLMs, Stock Pickers offer quant-driven signals and adaptive strategies for long-term growth and investment
Tickeron unveils an intuitive AI trading bot interface, offering tailored strategies for day, swing, and trend traders. From beginners to pros, discover tools designed to optimize trading precision, adapt to market volatility, and provide hedge fund-level insights for smarter investments.
#latest#popular#trading
Learn the 27 essential intraday trading rules that every manual trader should master—and discover how Tickeron’s AI platform applies them automatically for consistent, emotion-free execution and smarter, real-time decision-making.
#investment#trading
A $2 trillion sell-off has investors asking: is 2025 the next dot-com crash or a replay of the 2008 recession? This deep dive compares both scenarios, outlines warning signs, and reveals how AI-powered trading strategies can help navigate rising volatility.
#trading#investment
New to trading? Discover 21 powerful lessons every beginner must learn—and see how Tickeron’s AI Double Agent strategies apply them in real time. From mastering risk to managing emotions, this guide helps you trade smarter, safer, and more confidently.
#investment#trading
From the railroads of the 1920s to the AI giants of 2025, market history shows that extreme concentration often precedes massive bubbles and crashes. This article explores five key turning points and how Tickeron’s AI helps traders navigate today’s bubble-prone landscape.
#investment#trading
U.S. tariff tensions rocked markets this week, sending tech stocks into retreat and safe-haven assets like gold and the yen soaring. As investors brace for major earnings and global policy shifts, volatility remains high across equities, currencies, and commodities.
#investment#trading
Tesla’s Q1 2025 earnings could surprise investors as the EV giant looks to rebound from last quarter’s miss. With lowered expectations and increased volatility, Tickeron’s AI-powered strategy helps traders navigate both upside potential and downside risk.
#investment#trading
Gold is on a historic run—up 29% YTD with record-breaking inflows and growing macro tailwinds. Discover why smart investors are eyeing gold, silver, and miners for opportunity, and how AI trading tools are unlocking new ways to profit from the 2025 gold rush.
#investment#trading
Tickeron launches its innovative Double Agent Trading Bot, combining long NVDA trades with hedged NVDS positions. Using AI-driven pattern trading and real-time risk management, the bot achieves a 75% success rate, revolutionizing automated trading strategies.
#trading#investment
Tickeron’s AI trading bots are setting new standards in finance, achieving up to 86.6% win rates across leveraged and sector ETFs. Powered by advanced Financial Learning Models (FLMs), Tickeron’s AI delivers precision, adaptability, and real-time trading success.
#trading
Wall Street expects strong profit growth from the Magnificent Seven tech giants in 2025. Discover how to trade Apple, Microsoft, Amazon, Nvidia, Tesla, Meta, and Alphabet using AI-powered Double Agent strategies and smart hedging with inverse ETFs like QID.
On May 2, 2025, a diverse group of companies across energy, financial services, basic materials, consumer discretionary, and healthcare will release their Q1 2025 earnings.
In April 2025, five tech giants—NVIDIA, Tesla, Meta, Palantir, and Amazon—each surged over 40%, driven by AI breakthroughs, strong earnings, and market momentum. Discover what fueled the rally and how Tickeron’s AI trading bots helped investors outperform even these star stocks.
#investment
Markets ended April with mixed signals—gold slid on trade optimism, Big Tech lifted the Nasdaq, and Bitcoin steadied near $94K. With U.S. GDP contracting and job growth beating forecasts, investors brace for more volatility amid tariffs and central bank moves.
In a turbulent market, Tickeron's AI-powered Double Agent Bot is outperforming traditional strategies. Leveraging real-time intraday signals and inverse ETFs, the bot posted a +9.77% quarterly gain while the S&P 500 dropped 9.28%. Here's how AI is reshaping trading.
#trading