ProShares Ultra Semiconductors

Frequently Asked Questions About USD

What does USD invest in?

ProShares Trust - ProShares Ultra Semiconductors is an exchange traded fund launched and managed by ProShare Advisors LLC. It invests in public equity markets of the United States. The fund invests through derivatives in stocks of companies operating across information technology, semiconductors and semiconductor equipment sectors. The fund uses derivatives such as swaps to create its portfolio. The fund invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track 2x the daily performance of the Dow Jones U.S. Semiconductors Index, by using full replication technique. ProShares Trust - ProShares Ultra Semiconductors was formed on January 30, 2007 and is domiciled in the United States.

What is the expense ratio of USD?

ProShares Ultra Semiconductors (USD) charges an expense ratio of 0.94%. This is the annual fee deducted from fund assets to cover management and operations.

Is USD a good long-term hold?

USD 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 USD's daily reset work?

USD 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 USD?

ProShares Ultra Semiconductors (USD) manages $2.28B 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 USD actively managed or an index fund?

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