MVV Profile
The ProShares Ultra MidCap400 is an actively managed exchange-traded fund designed to deliver daily returns that aim to reflect twice the performance of the S&P MidCap 400 Index. The fund achieves this by investing in a range of financial instruments that ProShare Advisors believes will, in aggregate, meet its investment objective of providing leveraged exposure to mid-cap U.S. equities. The use of leverage amplifies the potential returns, as well as the associated risks, making this fund suitable for investors with a high-risk tolerance and a short-term investment horizon.
The S&P MidCap 400 Index, which the fund seeks to replicate and exceed, is a float-adjusted, market capitalization-weighted index that includes 400 mid-sized U.S. companies. The selection process for this index considers multiple factors such as liquidity, price stability, market capitalization, financial health, and public float. This methodology ensures that the index encompasses a broad spectrum of mid-cap companies and real estate investment trusts (REITs), reflecting a diverse cross-section of the U.S. mid-cap market.
The fund's non-diversified nature means it concentrates its investments in a specific set of mid-cap securities rather than spreading across various asset classes or sectors. This concentrated approach allows the fund to focus on mid-cap equities that meet the criteria established by the index, potentially leading to higher volatility and larger fluctuations in performance compared to more diversified funds. Investors should be aware that while the fund aims for high returns through leverage, it also carries increased risk associated with mid-cap stocks and the use of leveraged strategies.
Overall, the ProShares Ultra MidCap400 offers investors an opportunity to gain amplified exposure to mid-cap U.S. equities through a fund that seeks to provide twice the daily performance of the S&P MidCap 400 Index. By concentrating on mid-cap companies and employing leverage, the fund targets higher potential returns, though with an understanding that this comes with elevated risk. It is intended for investors looking for a high-risk, high-reward investment strategy focused on the dynamic mid-cap segment of the equity market.
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