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
: 29.4.2026