ProShares - Ultra Materials

Frequently Asked Questions About UYM

What does UYM invest in?

The ProShares Ultra Materials fund (UYM) endeavors to provide daily returns that are double (2x) the daily performance of the S&P Materials Select SectorSM Index. This objective is pursued before accounting for any associated fees and operating expenses.

What is the expense ratio of UYM?

ProShares - Ultra Materials (UYM) charges an expense ratio of 1.18%. This is the annual fee deducted from fund assets to cover management and operations.

Is UYM a good long-term hold?

UYM 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 UYM's daily reset work?

UYM 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 UYM?

ProShares - Ultra Materials (UYM) manages $37.5M 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 UYM actively managed or an index fund?

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