Leveraged and inverse exposure decay
Daily reset mechanics can cause performance to differ from the underlying benchmark over time.
- Scope
- Ultra and UltraShort funds, VIX funds
- Materiality
- high
ProShares Trust II
ProShares Trust II is a Delaware statutory trust that sponsors a family of exchange-traded funds organized as separate series. Its funds provide leveraged, inverse, and volatility-linked exposure through futures, swaps, forward contracts, and related financial instruments, with shares listed on U.S. exchanges.
| % | |
|---|---|
| Leveraged Funds | 45% ETFs designed to deliver amplified daily exposure to commodity and currency benchmarks. |
| Geared VIX Funds | 20% Funds providing short or leveraged exposure to short-term VIX futures. |
| Matching VIX Funds | 15% ETFs seeking exposure linked to VIX futures index performance. |
| Commodity Index Funds | 20% Funds tied to commodity benchmarks such as crude oil, natural gas, gold, and silver. |
The funds are bought by investors seeking tactical exposure to commodities, currencies, or volatility rather than...
- Retail ETF investorsprimary
Buy listed shares for short-term directional exposure to commodities, currencies, or VIX.
- Financial advisorssecondary
Use the funds as portfolio tools for hedging or tactical allocation.
- Institutional traders and hedgerssecondary
Use the funds for volatility management, trading, or risk transfer.
- Authorized Participantsprimary
Create and redeem fund shares in large blocks to support ETF liquidity.
ProShares Trust II is organized in the United States and its shares trade on U.S. exchanges, including NYSE Arca and...
- •U.S.-domiciled trust organized as a Delaware statutory trust
- •Shares listed on NYSE Arca and Cboe BZX
- •Underlying exposure spans global futures and currency markets
- •Counterparties include major U.S. and international banks
- •Operational and regulatory framework is U.S.-based
The trust’s core strategy is to offer exchange-traded vehicles that deliver daily leveraged, inverse, or...
01
Maintain efficient ETF creation and redemptionshort-term
Keeps share prices aligned with NAV and supports liquidity.
02
Preserve benchmark-linked exposuremedium-term
The funds are designed to deliver specific daily exposure profiles.
03
Manage derivative counterparty and execution relationshipsmedium-term
Performance and operational continuity depend on futures, swap, and forward counterparties.
The funds are exposed to market volatility, derivative pricing risk, and the possibility that leveraged or inverse...
Commodity and volatility market swings
Fund values depend on futures prices that can move sharply and unpredictably.
- Scope
- Crude oil, natural gas, gold, silver, VIX
- Materiality
- high
Counterparty and clearing risk
Swaps and forwards depend on banks and clearing organizations honoring obligations.
- Scope
- Swap and forward contracts
- Materiality
- high
Regulatory and exchange restrictions
CFTC, CEA, and exchange rules can limit positions, trading, or creation activity.
- Scope
- Futures-based funds
- Materiality
- high
Cybersecurity and service-provider disruption
Operational failures at the sponsor, administrator, or vendors could interrupt fund services.
- Scope
- Transfer agent, administrator, index providers
- Materiality
- medium
Fair value measurement of derivatives
Large period-to-period volatility in reported results
NAV-based management fees
Operating expenses fluctuate with fund size
Trade-date accounting for financial instruments
Can influence quarter-end comparability
Derivative gain/loss recognition
Reported income is highly sensitive to market direction
VS Trust
UVIX · Commodity Contracts Brokers & Dealers
VS Trust is a Delaware statutory trust that issues exchange-traded shares through separate series focused on VIX futures exposure.
iShares S&P GSCI Commodity-Indexed Trust
GSG · Commodity Contracts Brokers & Dealers
iShares S&P GSCI Commodity-Indexed Trust is a Delaware statutory trust that issues Shares representing fractional interests in a portfolio of commodity index futures and collateral assets.
INVESCO DB US DOLLAR INDEX BEARISH FUND
UDN · Commodity Contracts Brokers & Dealers
Invesco DB US Dollar Index Bearish Fund is a Delaware statutory trust ETF-like commodity pool that seeks to profit from declines in the U.S.
Invesco DB Oil Fund
DBO · Commodity Contracts Brokers & Dealers
Invesco DB Oil Fund is a U.S.-listed commodity ETF structured as a Delaware statutory trust series that gives investors exposure to crude oil futures rather than physical oil.
iShares Bitcoin Trust ETF
IBIT · Commodity Contracts Brokers & Dealers
iShares Bitcoin Trust ETF is a U.S.-domiciled exchange-traded trust that holds bitcoin and issues shares representing fractional beneficial interests in the trust’s net assets.
Invesco DB Commodity Index Tracking Fund
DBC · Commodity Contracts Brokers & Dealers
Invesco DB Commodity Index Tracking Fund is a commodity ETF-style trust that seeks to track the DBIQ Optimum Yield Diversified Commodity Index Excess Return through exchange-traded futures contracts.
: 29/04/2026