Company: EUO
Filing Date: 2025-02-13
Form Type: S-3
Source: 0001193125-25-026203
Chunk: 41

Company: ProShares Trust II
Filing Date: 2025-02-13
Form: S-3
Chunk 41
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) dated futures contracts than those included in its benchmark based on the Sponsor’s analysis of factors such as current or expected market volatility, margin and/or collateral requirements, and the liquidity and cost of establishing and maintaining such positions. For example, in 2020 the Sponsor modified certain of the Oil Funds’ investment strategies in response to global developments, including unprecedented price volatility in the markets for crude oil and crude oil futures contracts and related Financial Instruments, and the imposition of exchange position limits on each Oil Fund’s investment in futures contracts. As a result of these changes, for the period April 27, 2020 through September 17, 2020, the Oil Funds invested in longer dated futures contracts than the futures contracts included in their benchmark at the time ( i.e ., the Prior Oil Benchmark). To the extent an Oil Fund has exposure to longer (or shorter) dated futures contracts not included in its benchmark, the daily performance of such Oil Fund should be expected to differ from two times (2x), or two times the inverse (-2x), as applicable, of the daily performance of its benchmark. These differences could be significant. Further, when an Oil Fund is exposed to longer-dated futures contracts, the performance of the Fund should be expected to deviate to a greater extent from the “spot” price of WTI crude oil than if the Fund had exposure to a shorter-dated futures contract and may underperform investments that are linked to the “spot” price of crude oil. On September 17, 2020, each Oil Fund switched to a new benchmark, the Bloomberg Commodity Balanced WTI Crude Oil Index. Except as otherwise described herein, each Oil Fund intends to seek daily investment results, before fees and expenses, that correspond either to a multiple (2x) or an inverse multiple (-2x), as applicable, of the performance of the Bloomberg Commodity Balanced WTI Crude Oil Index for a single day, not for any other period. Each Oil Fund also may invest in crude oil-related Financial Instruments, such as futures contracts on other crude oil benchmarks or indices, options on crude oil futures contracts and non-exchange traded (“over-the-counter” or “OTC”) transactions that are based on the price of

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crude oil, crude oil benchmarks or crude oil futures contracts. The use of these investment strategies could have a negative impact on the Oil Funds due to, among other things, potentially increased costs of trading in alternative instruments or the inability to obtain the desired exposure and could cause a