EQRR: PROSHARES EQUITIES FOR RISING RATES ETF
ETF Education Report: ProShares Equities for Rising Rates ETF (EQRR)
What this ETF is trying to do
The ProShares Equities for Rising Rates ETF (EQRR) is an exchange-traded fund designed to track certain equities. While the specific strategy is contained within its name, it holds a variety of different companies in its portfolio.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return measures only how much the share price has changed.
• Total Return includes both the change in share price and any cash distributions (dividends) paid out to investors.
For EQRR, the numbers show growth in both areas:
• Year-to-Date (YTD): The price return is approximately 35.50%, while the total return is approximately 36.63%.
• One Year: The price return was approximately 39.33%, and the total return was approximately 40.97%.
• Three Years: The price return was approximately 75.52%, and the total return was approximately 85.79%.
To visualize the price change, the estimated price from roughly one year ago was $62.60. The current price is $87.21.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. EQRR has a distribution yield of approximately 0.99%. This means the cash paid out is about 0.99% of the ETF's price. Over the last 12 months, there were 4 distributions, which usually happen every quarter. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly over time. StockValueFinder uses an "erosion-risk score" to help measure this risk. For EQRR, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in this portfolio (note that this is a partial list):
• Marathon Petroleum Corp (3.56%)
• Valero Energy Corp (3.36%)
• ConocoPhillips (3.19%)
• Occidental Petroleum Corp (3.18%)
• Chevron Corp (3.09%)
• Baker Hughes Co Class A (3.08%)
Pros
• The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• The erosion-risk measurement is rated as "good."
Cons
• The distribution yield is relatively low at approximately 0.99%.
Beginner takeaway
EQRR has experienced significant growth in its share price and total return over the last few years. While it does pay out regular distributions, they are a small part of the overall return compared to the price increase. Always remember that past performance does not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MARATHON PETROLEUM CORP | MPC | 3.56% |
| 2 | VALERO ENERGY CORP | VLO | 3.36% |
| 3 | CONOCOPHILLIPS | COP | 3.19% |
| 4 | OCCIDENTAL PETROLEUM CORP | OXY | 3.18% |
| 5 | CHEVRON CORP | CVX | 3.09% |
| 6 | BAKER HUGHES CO CLASS A | BKR | 3.08% |
| 7 | ZSCALER INC | ZS | 3.02% |
| 8 | DIAMONDBACK ENERGY INC | FANG | 3.01% |
| 9 | EOG RESOURCES INC | EOG | 2.91% |
| 10 | DEVON ENERGY CORP | DVN | 2.89% |