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 Japan ETF (EZJ)

What this ETF is trying to do

The ProShares Ultra MSCI Japan ETF (ticker: EZJ) is a leveraged ETF. This means it is designed to provide more movement than the index it follows. It focuses on the Japanese market. Because it is a leveraged fund, its price changes can be much larger than standard funds.

What the numbers show

The data shows significant growth in both share price and total returns over different time periods. It is important to note 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 34.82%, while the total return is approximately 37.26%.

• One Year: The price return is approximately 37.41%, and the total return is approximately 40.69%.

• Three Years: The price return is approximately 123.43%, and the total return is approximately 136.79%.

This ETF has a history of forward splits. In a forward split, each old share becomes multiple new shares. This causes the quoted price per share to fall proportionally, but it does not change how much of the fund you own.

Income and distribution explanation

EZJ provides cash distributions to investors. The distribution yield is approximately 1.97%. Over the last 12 months, there were 4 distributions, which usually happen on a quarterly basis. The trailing distributions total 1.376.

When looking at yields, remember that a distribution yield is the cash paid out relative to the price. It is not the same as the total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying 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.

Pros

• Strong Historical Returns: The fund has shown high price and total returns over the one-year and three-year periods.

• Positive Price Trend: The erosion score suggests there has been no detected price erosion.

Cons

• Leverage Risk: As a leveraged ETF, this fund is designed for different types of market movement and can be more volatile than standard ETFs.

• Limited Holdings: The fund has a small number of total holdings (2).

Beginner takeaway

EZJ is a leveraged fund focused on Japan. While it has shown strong price and total returns recently, its leveraged nature means it behaves differently than a standard index fund. Investors should distinguish between the share price movement (price return) and the overall gain including cash payments (total return).