ProShares Ultra Utilities

Frequently Asked Questions About UPW

What does UPW invest in?

UPW provides 2x leveraged exposure to the S&P Utilities Select Sector Index, a market cap-weighted index of US utilities companies drawn exclusively from the S&P 500. The index includes the following GICS industries: electric, gas, water, and multi-utilities, independent power, and renewable electricity producers. UPW is designed as a short-term trading vehicle, not a long-term investment. It holds swap agreements and resets on a daily basis. As a result, compounding and path dependency make long-term returns difficult to predict when compared with the performance of its underlying index. Prior to March 20, 2023, the fund tracked the Dow Jones US Utilities Index.

What is the expense ratio of UPW?

ProShares Ultra Utilities (UPW) charges an expense ratio of 1.59%. This is the annual fee deducted from fund assets to cover management and operations.

Is UPW a good long-term hold?

UPW 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 UPW's daily reset work?

UPW 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 UPW?

ProShares Ultra Utilities (UPW) manages $18.6M 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 UPW actively managed or an index fund?

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