The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
When it comes to sector exchange-traded funds, it's hard to find funds that are more revered — and better performing — than technology fare.

What Happened: Regarding tech industry ETFs, cloud computing and cybersecurity funds have been stout performers and investor favorites. Now, aggressive traders can get add some leverage to the mix thanks to new duo of geared ETFs.

On Thursday, ProShares launched the ProShares Ultra Nasdaq Cybersecurity ETF (NASDAQ:UCYB) and the ProShares Ultra Nasdaq Cloud Computing (NASDAQ:SKYU).

UCYB is the first leveraged cybersecurity ETF. Direxion launched a bullish and bearish set of leveraged cloud ETFs earlier this month.

Why It's Important: “The growing need for remote computing, and our increased reliance on secure internet communications and connectivity — existing themes accelerated by the coronavirus pandemic — have expanded the already significant investment opportunities in the cybersecurity and cloud computing industries,” says ProShares CEO Michael L. Sapir. “Our new ETFs will offer investors a way to gain leveraged exposure to these rapidly changing industries in a transparent ETF format.”

UCYB, the leveraged cybersecurity ETF, looks to deliver double the daily performance of the Nasdaq CTA Cybersecurity Index. That's the same index tracked by the $3.48 billion First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR).

SKYU, the ProShares cloud ETF, looks to deliver double the daily performance of the ISE CTA Cloud Computing Index. That's the underlying benchmark for the First Trust Cloud Computing ETF (NASDAQ:SKYY), the original cloud ETF.

What's Next: Like any leveraged ETFs, the new SKYU and UCYB should be treated as short-term instruments, not long-term investments.

“Due to the compounding of daily returns, holding periods of greater than one day can result in returns that are significantly different than the target return and ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period,” according to ProShares.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

(Photo: Philipp Katzenberger on Unsplash)

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