UDOW targets three times the Dow Jones Industrial Average’s return for a single day, before fees and expenses. DIA seeks generally to track the Dow’s price and yield performance before expenses. That makes DIA the conventional index-tracking choice here; UDOW is a daily leveraged fund whose longer-term return is not simply three times the Dow’s cumulative return.
What is the difference between UDOW and DIA?
Both funds reference the Dow Jones Industrial Average (DJIA), but their objectives—and the way investors should interpret their returns—are different.
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| Feature | UDOW | DIA |
|---|---|---|
| Fund objective | Seeks 3x the DJIA’s performance for one day, before fees and expenses. ProShares UDOW fund page. | Seeks generally to correspond to the DJIA’s price and yield performance before expenses. State Street DIA fact sheet. |
| Holding-period design | Daily target; returns over longer periods may differ significantly from three times the index’s cumulative return. ProShares UDOW fund page. | Conventional index-tracking ETF objective; it does not seek a daily multiple of the index. State Street DIA fact sheet. |
| Published expense ratio | 0.95% gross and 0.95% net, as reported on ProShares’ fund page accessed October 4, 2026. ProShares UDOW fund page. | 0.16% gross, according to State Street’s fact sheet dated June 30, 2026. State Street DIA fact sheet. |
| Benchmark | DJIA, a price-weighted index of 30 U.S. blue-chip stocks. ProShares UDOW fund page. | DJIA, a price-weighted index of 30 U.S. blue-chip stocks, per State Street’s June 30, 2026 fact sheet. State Street DIA fact sheet. |
| Distinctive risks | Leverage and daily resetting can magnify losses and make multi-day results sensitive to the path and volatility of daily returns. ProShares UDOW fund page. | Equity-market, tracking, liquidity, and premium-or-discount risks; shares may trade above or below net asset value (NAV). State Street DIA fact sheet. |
The expense ratios are dated disclosures, not a complete measure of what an investor will pay. Brokerage commissions and other trading costs can also affect returns; check current fund documents and your brokerage terms.
Is UDOW three times DIA?
No—not over an arbitrary holding period. UDOW’s stated multiple is a daily target for the DJIA, not a promise to return three times DIA’s result over a week, month, or year. DIA itself seeks to correspond generally to the index’s price and yield performance, while UDOW pursues leveraged daily exposure.
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Because daily returns compound, the order and size of the index’s moves matter. ProShares warns: “For any holding period other than a day, your return may be higher or lower than the Daily Target. These differences may be significant.” The sponsor says smaller index moves combined with higher volatility can worsen the divergence, while larger moves with lower volatility can improve it. Divergence is possible; a loss from decay is not guaranteed in every period.
A hypothetical example of daily compounding
This is arithmetic, not historical UDOW performance. Suppose the index rises 10% on day one and falls 9.09% on day two. It ends approximately where it started: 1.10 × 0.9091 is about 1.00. A fund that delivered exactly 3x each daily move would gain 30% and then lose about 27.27%, leaving it down about 5.45% cumulatively, before fees and tracking effects. The example shows why a daily multiple does not translate into the same multiple of a multi-day index return.
Which has the lower expense ratio?
DIA’s published gross expense ratio is lower in the cited disclosures: State Street reports 0.16% in its fact sheet dated June 30, 2026, compared with ProShares’ reported 0.95% gross and net expense ratios for UDOW on the fund page accessed October 4, 2026. These figures have different publication dates, so verify current documents before investing. Expense ratios do not include every possible trading cost.
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How broad is the Dow exposure?
Both funds are tied to the DJIA, which State Street describes as a price-weighted index of 30 U.S. blue-chip stocks. Price weighting means a constituent’s share price—not simply its company size—helps determine its influence in the index. Thirty stocks do not amount to whole-market exposure, and neither fund removes concentration in the index’s companies or sectors.
As a dated illustration, State Street’s June 30, 2026 fact sheet lists financials at 26.70% and industrials at 18.94% of DIA’s sector weights. Those are snapshots that can change. The same fact sheet reports a 1.36% 30-day SEC yield for DIA on that date; SEC yield is a standardized measure and should not be treated as interchangeable with a distribution yield or used as a direct comparison with UDOW distributions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to decide which fund fits your strategy
- Start with the objective. If the intended exposure is generally aligned with the Dow’s price and yield performance, DIA’s objective is the closer match. UDOW is designed for a daily 3x target, which is a materially different exposure.
- Consider the holding period and return path. With UDOW, a multi-day outcome depends on daily compounding and volatility, not just the index’s start-to-finish change. Do not assume its return over a longer interval will equal three times the index’s cumulative return.
- Account for the added risk. UDOW can magnify daily losses as well as gains. DIA still carries stock-market and ETF risks, including tracking differences, liquidity concerns, and possible market-price deviations from NAV.
- Check the full cost picture. Compare current fund disclosures and account-level trading costs rather than relying only on an expense ratio.
- Match the decision to your circumstances. Investment horizon, risk tolerance, objectives, tax circumstances, and the rest of a portfolio all matter; this comparison cannot determine personal suitability.
Performance figures can change and should not be read as forecasts. When comparing published performance, check whether it is based on NAV or market price, the measurement period and as-of date, and how fees and dividends are treated.
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