ProShares Trust - ProShares Ultra CRCL

Frequently Asked Questions About CRCA

What does CRCA invest in?

CRCA is a leveraged ETF, and like all geared products, is intended to be held only short periods, its not appropriate for buy-and-hold investors. CRCA provides 2x the return of Circle Internet Group (CRCL) on a daily basis. Circle Internet Group is a financial technology company that enables businesses to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Daily compounding of returns can lead to the fund's returns varying significantly from the 2x exposure to the shares over longer holding periods. CRCA is a tactical tool, so trading costs and volume matter.

What is the expense ratio of CRCA?

ProShares Trust - ProShares Ultra CRCL (CRCA) charges an expense ratio of 1.01%. This is the annual fee deducted from fund assets to cover management and operations.

Is CRCA a good long-term hold?

CRCA is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does CRCA's daily reset work?

CRCA rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is CRCA?

ProShares Trust - ProShares Ultra CRCL (CRCA) manages $117.9M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is CRCA actively managed or an index fund?

CRCA's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.