Company: EUO
Filing Date: 2025-03-18
Form Type: S-1/A
Source: 0001193125-25-056734
Chunk: 38

Company: ProShares Trust II
Filing Date: 2025-03-18
Form: S-1/A
Chunk 38
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2022 seeking comment on measures that could prevent or restrict investors from buying a broad range of public securities designated as “complex products”—which could include the leveraged and inverse leveraged funds offered by ProShares. The ultimate impact, if any, of these measures remains unclear. However, if regulations are adopted, they could, among other things, prevent or restrict investors’ ability to buy Shares in the Funds. Risk that Current Assumptions and Expectations Could Become Outdated As a Result of Global Economic Shocks. The onset of the novel coronavirus (COVID-19) and its variants caused significant shocks to global financial markets and economies, with many governments taking extreme actions in an attempt to slow and contain the spread of COVID-19. These actions had a severe economic impact on global economies as economic activity in some instances has essentially ceased. As the hospitalization rates and COVID-related deaths fell, the severity of lockdowns and restrictive policies relative to the onset of the COVID-19 pandemic decreased as the situation gradually improved. Currently the bear market continues to recover from the lockdowns and restrictions that brought economic strain to several

-22

industries. Contemporaneous with the onset of the COVID-19 pandemic in the U.S., crude oil markets experienced shocks to the supply of and demand for crude oil. This led to an oversupply of crude oil, which impacted the price of crude oil and futures contracts on crude oil and caused historic volatility in the market for crude oil and crude oil futures contracts. Crude oil was stable for the entirety of 2024. The futures curve remained mostly flat with crude futures consistently settling in the $70’s. There was low volatility considering it was an election year that resulted in a political regime change and the potential for future policies that could impact energy markets. Each Fund seeks to achieve its investment objective even during periods when the performance of the Fund’s benchmark is flat or when the benchmark is moving in a manner that may cause the value of the Fund to decline. 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 considerations 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 benchmark consistent with its investment objective, without regard to market conditions, trends, or direction. This is the case even during periods in which a Fund’s benchmark is flat or moving in