Company: EUO
Filing Date: 2025-02-13
Form Type: S-1
Source: 0001193125-25-026199
Chunk: 113

Company: ProShares Trust II
Filing Date: 2025-02-13
Form: S-1
Chunk 113
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 terrorist attack or an act of God) or disruptions ( e.g ., a trading halt or a flash crash) or in situations where the Sponsor deems it impractical or inadvisable to buy or sell futures contracts (such as during periods of market volatility or illiquidity). In addition, the UltraShort Euro may, but is not required to, seek to use options strategies that limit losses ( i.e ., have “floors”) or are otherwise designed to prevent the Fund’s NAV from going to or below zero. Use of such options strategies will not prevent the UltraShort Euro Fund from losing value, and their use may not prevent the Fund’s NAV from going to or below zero. Rather, it is intended to allow the UltraShort Euro Fund to preserve a small portion of its value in the event of significant movements in its benchmark or Financial Instruments based on its benchmark. The UltraShort Euro Fund will also hold cash or cash equivalents such as U.S. Treasury securities or other high credit quality, short-term fixed-income or similar securities (such as shares of money market funds) as collateral for Financial Instruments and pending investment in Financial Instruments. Investment Strategies Applicable to All Funds: The Funds are not actively managed by traditional methods ( e.g ., by effecting changes in the composition of a portfolio on the basis of judgments relating to economic, financial and market conditions with a view toward obtaining positive results under all market conditions). Each Fund seeks to remain fully invested at all times in Financial Instruments and money market instruments that, in combination, provide exposure to its underlying benchmark consistent with its investment objective without regard to market conditions, trends or direction.

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A Fund may obtain exposure through Financial Instruments to a representative sample of the components in its underlying benchmark which have aggregate characteristics similar to those of the underlying benchmark. This “sampling” process typically involves selecting a representative sample of components in a benchmark principally to enhance liquidity and reduce transaction costs while seeking to maintain high correlation with, and similar aggregate characteristics ( e.g ., underlying commodities and valuations) to, the underlying benchmark. In addition, the Funds may obtain exposure to components not included in its underlying benchmark, invest in assets that are not included in its underlying benchmark or may overweight or underweight certain components contained in the underlying benchmark. Each Fund seeks to position its portfolio so that its exposure to its benchmark is consistent with its investment objective. The time and manner in which a Fund rebalances its portfolio may vary from day to day depending upon market conditions and other circumstances, at the discretion