Company: EUO
Filing Date: 2025-02-13
Form Type: S-1
Source: 0001193125-25-026199
Chunk: 109

Company: ProShares Trust II
Filing Date: 2025-02-13
Form: S-1
Chunk 109
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ancing of the underlying portfolio. Particularly during periods of higher benchmark volatility, compounding can dramatically and adversely cause longer term results to vary from the benchmark performance times the stated multiple in the Fund’s investment objective. This effect becomes more pronounced as volatility increases. Volatility has a negative impact on Geared Fund performance and may be at least as important to a Geared Fund’s return for a period as the return of the Geared Fund’s underlying benchmark. A Geared Fund will lose money if its benchmark’s performance is flat over time, and a Geared Fund can lose money regardless of the performance of its underlying benchmark. While each Geared Fund has a daily investment objective, which is discussed in more detail below, you may hold a Geared Fund’s shares for longer than one day if you believe doing so is consistent with your goals and risk tolerance. If you hold an Ultra Fund’s Geared Fund’s shares for any period other than a given day, it is important for you to understand that over your holding period: • Your return may be higher or lower than the Daily Target, and this difference may be significant. • Factors that contribute to returns that are worse than the Daily Target include smaller benchmark gains or losses and higher benchmark volatility, as well as longer holding periods when these factors apply. • Factors that contribute to returns that are better than the Daily Target include larger benchmark gains or losses and lower benchmark volatility, as well as longer holding periods when these factors apply. • The more extreme these factors are, and the more they occur together, the more your return will tend to deviate from the Daily Target. Investment Objective of the Ultra Funds: Each Ultra Fund seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of its benchmark. Each Ultra Fund acquires long exposure through any one of or combinations of Financial Instruments such that each Ultra Fund typically has exposure intended to approximate two times (2x) its benchmark at the time of its NAV calculation. If an Ultra Fund is successful in meeting its investment 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. An Ultra Fund does not seek to achieve two times (2x) the daily performance of its benchmark (a “Daily Target”) for any period other than a day. Each UltraShort Fund acquires inverse exposure through any one of or combinations of Financial Instruments such that