ROM: PROSHARES ULTRA TECHNOLOGY
Share-split context: A forward split was recorded on Jan 13, 2022 with coefficient 2. 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.
ETF Education Report: ProShares Ultra Technology (ROM)
What this ETF is trying to do
The ProShares Ultra Technology ETF (ticker: ROM) is a leveraged ETF. This means it is designed to move differently than the standard market. It focuses on the technology sector. Because it is leveraged, it seeks to provide different results than a regular technology fund.
What the numbers show
The current price of ROM is $168.38. When looking at how this ETF has performed, it is important to look at two different numbers: the price return and the total return.
• Price Return: This measures only how much the share price changed.
• Total Return: This includes both the price change and any cash distributions (dividends) paid out.
According to the data:
• Year-to-Date (YTD): The price return is approximately 78.56%, while the total return is approximately 78.61%.
• One-Year: The price return is approximately 77.45%, and the total return is approximately 77.52%.
• Three-Year: The price return is approximately 308.79%, and the total return is approximately 311.00%.
This ETF has a history of "forward splits." In a forward split, each old share becomes multiple new shares. This makes the price per share look lower, but it does not change how much of the fund you own.
Top Holdings
The following are the top holdings in this portfolio (note that this list is partial):
• Technology Select Sector Index Swap: 35.85%
• NVIDIA Corp: 8.57%
• Apple Inc: 7.68%
• Microsoft Corp: 5.72%
• Advanced Micro Devices Inc: 2.85%
• Broadcom Inc: 2.68%
• ProShares Genius Money Market ETF: 2.66%
• Micron Technology Inc: 2.54%
• Intel Corp: 1.93%
• Palantir (PLTR): 1.33%
Income and distribution explanation
Some investors look for "yield," which is the cash paid out by an ETF. ROM has a distribution yield of approximately 2.32%. The data shows the distributions are "irregular," meaning they do not happen on a set schedule. In the last 12 months, there were 2 payouts.
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 track this. For ROM, the erosion score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown very high total returns over the last one, three, and five years.
• The erosion-risk measurement is rated as "good."
Cons
• This is a leveraged ETF, which can be more volatile than standard funds.
• The distribution frequency is irregular rather than a steady monthly or quarterly payment.
Beginner takeaway
ROM is a leveraged technology ETF that has experienced significant price and total returns recently. While it pays a distribution yield, investors should remember that price returns and total returns are different, and high returns in the past do not guarantee future results.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | TECHNOLOGY SELECT SECTOR INDEX SWAP | n/a | 35.85% |
| 2 | NVIDIA CORP | NVDA | 8.57% |
| 3 | APPLE INC | AAPL | 7.68% |
| 4 | MICROSOFT CORP | MSFT | 5.72% |
| 5 | ADVANCED MICRO DEVICES INC | AMD | 2.85% |
| 6 | BROADCOM INC | AVGO | 2.68% |
| 7 | PROSHARES GENIUS MONEY MARKET ETF | IQMM | 2.66% |
| 8 | MICRON TECHNOLOGY INC | MU | 2.54% |
| 9 | INTEL CORP | INTC | 1.93% |
| 10 | n/a | PLTR | 1.33% |