Company: EUO
Filing Date: 2025-03-18
Form Type: S-1/A
Source: 0001193125-25-056734
Chunk: 16

Company: ProShares Trust II
Filing Date: 2025-03-18
Form: S-1/A
Chunk 16
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 As a result, the Fund’s exposure will need to be decreased. The time and manner in which a Geared Fund rebalances its portfolio may vary from day to day at the sole discretion of the Sponsor depending upon market conditions and other circumstances. If for any reason a Geared Fund is unable to rebalance all or a portion of its portfolio, or if all or a portion of the portfolio is rebalanced incorrectly, the Fund’s investment exposure may not be consistent with the Fund’s investment objective. In these instances, a Geared Fund may have investment exposure to its underlying benchmark that is significantly greater or less than its stated multiple. As a result, a Geared Fund may be more or less exposed to leverage risk than if it had been properly rebalanced and may not achieve its investment objective. Volatility has a negative impact on Geared Fund performance and the volatility of a Geared Fund’s benchmark may be at least as important to a Geared Fund’s return as the return of the Geared Fund’s benchmark. Each Geared Fund uses leverage. If an Ultra Fund is successful in meeting its objective, it should gain approximately two times as much as its Benchmark when the Benchmark rises on a given day. Conversely, an Ultra Fund should lose approximately two times as much as its Benchmark when the Benchmark falls on a given day. The return for a single day of an UltraShort Fund with a -2x multiple should be approximately two times as volatile for a single day as the return of a fund with an objective of matching the same benchmark. If an UltraShort Fund is successful in meeting its investment objective, it should gain approximately two times as much as its Benchmark loses when the Benchmark falls on a given day. Conversely, an UltraShort Fund should lose approximately two times as much as its Benchmark gains when the Benchmark rises on a given day. Please refer to “The use of leveraged or inverse leveraged positions increases risk and could result in the total loss of an investor’s investment within a given day” and “The performance of a Geared Fund for periods longer than a given day will likely differ from the Daily Target and investors holding shares for longer than a day should understand the impact of benchmark returns and volatility (how much the value of the benchmark moves up and day from day-to-day) on their holding period return,” under the caption “Risk Factors” on page 12 and “Investment Objectives and Principal Investment Strategies” beginning on page 50 for additional detail.

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All Funds Each Fund intends to invest in