PST Profile
The ProShares UltraShort 7-10 Year Treasury fund is designed to provide investors with leveraged inverse exposure to U.S. Treasury securities with maturities ranging from seven to ten years. The fund seeks to deliver daily investment results that correspond to -2x (negative two times) the daily performance of an index comprising U.S. Treasury securities in this maturity range. The objective is to profit from declines in the value of these securities, which typically occurs when interest rates rise.
The underlying index consists of U.S. Treasury securities that are publicly issued, with maturities between seven and ten years and a minimum outstanding face value of $300 million. This index excludes securities held by the Federal Reserve. By targeting this specific segment of the Treasury market, the fund aims to offer a precise tool for investors seeking to hedge against or capitalize on movements in mid-term government bond yields.
To achieve its leveraged inverse exposure, the fund employs a range of financial instruments, including futures contracts, swaps, and other derivatives. ProShare Advisors, the fund’s investment manager, carefully selects these instruments to match the fund's investment objective and to maintain the desired level of leverage. This approach allows the fund to amplify the inverse performance of its target index on a daily basis.
As a leveraged fund, it is important to note that the ProShares UltraShort 7-10 Year Treasury fund is intended for short-term trading and may not be suitable for long-term investors due to the effects of compounding and daily rebalancing. The fund's performance may deviate significantly from its intended objective over longer periods, especially in volatile or trending markets. Investors should carefully consider their investment goals and risk tolerance before investing in this fund.
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