Share-split context: A forward split was recorded on May 24, 2018 with coefficient 3.000003. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

Understanding the ProShares Ultra MSCI EAFE ETF (EFO)

What this ETF is trying to do

The ProShares Ultra MSCI EAFE (ticker: EFO) is an ETF designed to provide leveraged exposure. This means it aims to amplify the performance of its underlying index. It is important to note that this is a leveraged ETF, which behaves differently than standard funds.

What the numbers show

The data shows how the share price and total returns have moved over different time periods. When looking at these numbers, it is important to remember that "price return" only tracks the change in the share price, while "total return" includes the impact of distributions.

• Year-to-Date (YTD): The price return is approximately 10.01%, while the total return is approximately 11.22%.

• One Year: The price return was approximately 15.20%, and the total return was approximately 17.13%.

• Three Years: The price return was approximately 97.16%, and the total return was approximately 108.41%.

• Five Years: The five-year total return is approximately 50.70%.

Because this ETF has a history of forward splits, the price returns provided are split-adjusted. In a forward split, each old share becomes multiple new shares, and the price per share falls proportionally. This change does not create a gain or a loss for the investor; it just changes how many shares you own.

Income and distribution explanation

EFO provides cash distributions to investors. The trailing distributions are approximately $1.13 per share. The distribution yield is approximately 1.61%. This yield represents the cash distributed relative to the current ETF price.

The fund usually pays distributions on a quarterly basis. Over the last 12 months, there were 4 payments, which typically occurred on Wednesdays.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Regarding price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Strong Historical Total Returns: The fund has shown significant total returns over one, three, and five-year periods.

• Positive Price Trend: Based on the erosion score, there is no detected price erosion.

Cons

• Leveraged Risk: As a leveraged ETF, it is designed for specific market exposures and may behave differently than non-leveraged funds.

• Lower Yield: The distribution yield of approximately 1.61% may be considered low for investors seeking high levels of immediate income.

Beginner takeaway

EFO is a leveraged ETF that has shown strong price and total returns over the last several years. While it pays quarterly distributions, the yield is relatively modest. Because it is a leveraged fund, investors should understand that its price movements are amplified compared to the index it follows.