ProShares - Ultra MSCI EAFE

Frequently Asked Questions About EFO

What does EFO invest in?

The ProShares Ultra MSCI EAFE is designed to achieve daily returns that are twice the daily performance of the MSCI EAFE Index, before accounting for any associated fees and expenses.

What is the expense ratio of EFO?

ProShares - Ultra MSCI EAFE (EFO) charges an expense ratio of 1.28%. This is the annual fee deducted from fund assets to cover management and operations.

Is EFO a good long-term hold?

EFO 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 EFO's daily reset work?

EFO 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 EFO?

ProShares - Ultra MSCI EAFE (EFO) manages $24.8M 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 EFO actively managed or an index fund?

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