ProShares Ultra Bloomberg Crude Oil

Frequently Asked Questions About UCO

What does UCO invest in?

ProShares Trust II - ProShares Ultra Bloomberg Crude Oil is an exchange traded fund launched by ProShare Capital Management LLC. The fund is co-managed by ProFund Advisors LLC and ProShare Advisors LLC. It invests in the commodity markets. The fund uses derivatives such as futures contracts to invest in WTI sweet, light crude oil. It seeks to track 2x the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index. ProShares Trust II - ProShares Ultra Bloomberg Crude Oil was formed on November 24, 2008 and is domiciled in the United States.

What is the expense ratio of UCO?

ProShares Ultra Bloomberg Crude Oil (UCO) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.

Is UCO a good long-term hold?

UCO 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 UCO's daily reset work?

UCO 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 UCO?

ProShares Ultra Bloomberg Crude Oil (UCO) manages $474.0M 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 UCO actively managed or an index fund?

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