ProShares Ultra Communication Services

Frequently Asked Questions About LTL

What does LTL invest in?

LTL provides 2x leveraged exposure to the Dow Jones US Select Telecommunications Index, a market-cap-weighted index of US telecom companies. Specifically, it holds a concentrated portfolio of firms involved in fixed line (regional and long-distance) and mobile telephone services (cellular, satellite, and paging). As a geared product with 2x factor that rebalances daily, LTL is not a buy-and-hold ETF, its a short-term tactical instrument. As a result, long-term returns can vary significantly from those of the underlying index due to daily compounding. Prior to March 20, 2023, the fund was called ProShares Ultra Telecommunications that tracked the Dow Jones U.S. Select Telecommunications Index.

What is the expense ratio of LTL?

ProShares Ultra Communication Services (LTL) charges an expense ratio of 1.83%. This is the annual fee deducted from fund assets to cover management and operations.

Is LTL a good long-term hold?

LTL 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 LTL's daily reset work?

LTL 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 LTL?

ProShares Ultra Communication Services (LTL) manages $3.9M 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 LTL actively managed or an index fund?

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