ProShares Ultra Russell 2000 Fund (UWM)

Overview

The fund operates under the guidance of ProShare Advisors, focusing on achieving daily returns that align with its Daily Target. It employs a strategic approach by investing in a selection of financial instruments expected to collectively meet this goal. The underlying benchmark for this strategy is a specific index that incorporates around 2000 of the smallest companies from the Russell 3000® Index, representing about 10% of the Russell 3000® Index’s total market capitalization. This focus on a subset of smaller companies differentiates the fund within the investment landscape. Notably, it adopts a non-diversified investment approach, meaning it may concentrate its investments more heavily in fewer sectors or assets than diversified funds.

Products and Services

The fund specializes in a few key services and investment approaches that are outlined below:

• Daily Target Achievement: The primary objective of the fund is to produce returns that are consistent with its predetermined Daily Target. This involves a calculated approach to selecting financial instruments that, when combined, are believed to achieve this outcome.
• Focus on Smaller Companies: By concentrating its investments in approximately 2000 of the smallest companies from the Russell 3000® Index, the fund seeks to capitalize on the potential growth and performance of these smaller entities. These companies are considered to be approximately 10% of the total market capitalization of the Russell 3000® Index, aiming to tap into unique market segments and opportunities.
• Non-Diversified Strategy: Unlike diversified funds that spread their investments across a wide array of sectors to minimize risk, this fund adopts a non-diversified approach. This strategy allows it to potentially achieve higher returns by concentrating investments in fewer sectors or assets, although it may also bear higher risks due to the less spread out exposure.