ProShares - Ultra Consumer Discretionary

Frequently Asked Questions About UCC

What does UCC invest in?

The ProShares Ultra Consumer Discretionary fund is designed to achieve daily returns, prior to any charges or costs, that are double (2x) the one-day performance of the S&P Consumer Discretionary Select SectorSM Index.

What is the expense ratio of UCC?

ProShares - Ultra Consumer Discretionary (UCC) charges an expense ratio of 1.63%. This is the annual fee deducted from fund assets to cover management and operations.

Is UCC a good long-term hold?

UCC 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 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 UCC's daily reset work?

UCC 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 UCC?

ProShares - Ultra Consumer Discretionary (UCC) manages $10.2M 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 UCC actively managed or an index fund?

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