UCO vs. ERX
Compare and contrast key facts about ProShares Ultra Bloomberg Crude Oil (UCO) and Direxion Daily Energy Bull 2X Shares (ERX).
UCO and ERX are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. UCO is a passively managed fund by ProShares that tracks the performance of the Dow Jones-UBS Crude Oil Sub-Index (200%). It was launched on Nov 24, 2008. ERX is a passively managed fund by Direxion that tracks the performance of the Energy Select Sector Index (300%). It was launched on Apr 1, 2020. Both UCO and ERX are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: UCO or ERX.
Key characteristics
| UCO | ERX | |
|---|---|---|
| YTD Return | -3.30% | 20.54% |
| 1Y Return | -17.65% | 20.70% |
| 3Y Return (Ann) | 2.61% | 32.18% |
| 5Y Return (Ann) | -25.78% | -13.26% |
| 10Y Return (Ann) | -32.79% | -20.72% |
| Sharpe Ratio | -0.32 | 0.63 |
| Sortino Ratio | -0.15 | 1.05 |
| Omega Ratio | 0.98 | 1.13 |
| Calmar Ratio | -0.15 | 0.23 |
| Martin Ratio | -1.03 | 1.72 |
| Ulcer Index | 14.71% | 12.97% |
| Daily Std Dev | 47.57% | 35.49% |
| Max Drawdown | -99.95% | -99.54% |
| Current Drawdown | -99.59% | -94.14% |
Correlation
The correlation between UCO and ERX is 0.64, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
UCO vs. ERX - Performance Comparison
In the year-to-date period, UCO achieves a -3.30% return, which is significantly lower than ERX's 20.54% return. Over the past 10 years, UCO has underperformed ERX with an annualized return of -32.79%, while ERX has yielded a comparatively higher -20.72% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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UCO vs. ERX - Expense Ratio Comparison
UCO has a 0.95% expense ratio, which is lower than ERX's 1.09% expense ratio.
Risk-Adjusted Performance
UCO vs. ERX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares Ultra Bloomberg Crude Oil (UCO) and Direxion Daily Energy Bull 2X Shares (ERX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
UCO vs. ERX - Dividend Comparison
UCO has not paid dividends to shareholders, while ERX's dividend yield for the trailing twelve months is around 2.54%.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
UCO ProShares Ultra Bloomberg Crude Oil | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ERX Direxion Daily Energy Bull 2X Shares | 2.54% | 3.17% | 2.23% | 2.16% | 2.35% | 1.56% | 3.10% | 0.85% |
Drawdowns
UCO vs. ERX - Drawdown Comparison
The maximum UCO drawdown since its inception was -99.95%, roughly equal to the maximum ERX drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for UCO and ERX. For additional features, visit the drawdowns tool.
Volatility
UCO vs. ERX - Volatility Comparison
ProShares Ultra Bloomberg Crude Oil (UCO) has a higher volatility of 17.80% compared to Direxion Daily Energy Bull 2X Shares (ERX) at 11.73%. This indicates that UCO's price experiences larger fluctuations and is considered to be riskier than ERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.