UJB Profile
The ProShares Ultra High Yield fund is an actively managed exchange-traded fund that seeks to deliver performance results consistent with its investment objectives on a daily basis. The fund primarily invests in a range of financial instruments, including high-yield corporate bonds and related derivatives, as selected by ProShare Advisors. The strategy is designed to provide leveraged exposure to the performance of high-yield corporate bonds, aiming to amplify daily returns relative to the underlying index.
The underlying index tracked by the fund is a market-value weighted benchmark composed of U.S. dollar-denominated high-yield corporate bonds. This index is specifically designed to offer a comprehensive representation of the high-yield bond market, including only the most liquid and actively traded securities. By focusing on high-yield bonds, which are often referred to as junk bonds, the fund targets higher income opportunities, albeit with a higher risk profile compared to investment-grade bonds.
The ProShares Ultra High Yield fund employs leverage to seek to double the daily return of the index. This means that the fund aims to achieve 200% of the daily performance of the underlying index. However, due to the use of leverage, the fund's performance may vary significantly from the index over longer periods, and investors should be aware of the increased potential for both higher returns and greater losses.
Given its focus on high-yield bonds and the use of leverage, the ProShares Ultra High Yield fund is classified as non-diversified. This implies that the fund's investments may be concentrated in a specific segment of the bond market, potentially leading to higher volatility and risk. Investors should carefully consider their risk tolerance and investment objectives before investing in this fund, as it is designed for those seeking enhanced exposure to high-yield corporate bonds with an understanding of the associated risks.
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