Aggresive Investors Should Ante Up with ProShares Ultra Financial ETF

If you agree with me that the battered U.S. financial market is at or near the bottom, the ProShares Ultra Financial ETF (AMEX: UYG) offers the dual advantages of one-stop shopping and leverage. It's not an investment for the faint-of-heart, but there is potential for a big capital gain for those who can deal with risk.

The objective of this ETF is to earn returns before expenses and fees that correspond to twice the daily performance of the Dow Jones U.S. Financials Index. As you might expect, this fund has been absolutely hammered as a result of the subprime crisis, the credit crunch, the U.S. housing slump, and now bank failures. The price tumbled from a high of $72.13 in February 2007 to a low of $14.75 earlier this month. (Figures in U.S. dollars.) That's a gut-wrenching drop of almost 80%! But we may have seen the bottom. The shares started to rally last week, finishing on Friday at $20.40.