Share-split context: This ETF has both forward- and reverse-split history. The most recent recorded event was on May 28, 2026 with coefficient 0.5. Current price-return figures are already split-adjusted. Forward splits receive no automatic performance penalty; reverse-split history remains a separate structural warning.

ETF Education Report: BZQ

What this ETF is trying to do

The ProShares UltraShort MSCI Brazil Capped ETF -2x Shares (BZQ) is a specialized type of fund. It is both "leveraged" and "inverse." This means it is designed to move in the opposite direction of a specific Brazilian market index, often with twice the intensity. Because it is an inverse fund, it typically aims to gain value when the underlying market falls.

What the numbers show

The data shows significant declines in share prices over various timeframes. It is important to distinguish between "price return" (the change in the share price) and "total return" (which includes distributions).

• Year-to-Date (YTD): The price return is approximately -54.49%, while the total return is approximately -52.58%.

• One Year: The price return is approximately -64.31%, while the total return is approximately -62.11%.

• Three Years: The price return is approximately -77.68%, while the total return is approximately -74.27%.

• Five Years: The five-year total return is approximately -88.31%.

Because this ETF has a history of both forward and reverse splits, we use split-adjusted returns to understand its performance. A forward split means one old share became multiple new shares, while a reverse split means multiple old shares were combined into fewer new ones.

Income and distribution explanation

This ETF has a distribution yield of approximately 7.47%. This represents the cash distributions paid out relative to the ETF's price. Over the last 12 months, there were four distributions totaling approximately $1.04 per share. While these payments provide cash income, a high yield does not mean an investor has earned that percentage as a total return.

NAV erosion explanation

This ETF has a severe erosion-risk flag. This warning was triggered because the split-adjusted price trend and the erosion score indicate substantial price deterioration. The fund has an erosion score of 10, which is labeled as "Severe price erosion."

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's assets). While a falling market price is a "share-price decline," the erosion score and flag are specific measurements used to highlight high risks regarding the stability of the fund's value.

Pros

• The ETF provides regular cash distributions (usually quarterly).

Cons

• It has experienced significant share-price declines over the last one, three, and five years.

• It carries a severe erosion-risk flag.

• The income rating grade is an "F."

Beginner takeaway

BZQ is a highly complex, leveraged, and inverse ETF. Investors should be aware that high distribution yields can exist even when the share price is falling significantly. In this case, the fund shows a history of severe price deterioration and carries a high erosion-risk warning.