RXL: ProShares Ultra Health Care 2X Shares
Share-split context: A forward split was recorded on Nov 7, 2024 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 Health Care 2X Shares (RXL)
What this ETF is trying to do
The ProShares Ultra Health Care 2X Shares (RXL) is an ETF that focuses on the health care sector. This is a "leveraged" ETF, which means it uses financial tools to try to amplify the movements of its target index.
What the numbers show
When looking at how this ETF has performed, it is important to understand two different types of returns: price return (the change in the share price) and total return (which includes both the share price change and any cash distributions paid out).
Based on the data provided:
• Year-to-Date (YTD): The price return is approximately 13.47%, while the total return is approximately 14.48%.
• One Year: The price return is approximately 28.99%, while the total return is approximately 30.59%.
• Three Years: The price return is approximately 39.72%, while the total return is approximately 45.15%.
This ETF has a history of "forward splits." In a forward split, each old share becomes multiple new shares. This causes the price per share to drop proportionally, but it does not change how much of the fund you own. Because this ETF has a split history, we use split-adjusted returns to show true performance.
Top Holdings
The following are the top holdings in this portfolio (note that this list is partial):
• PROSHARES GENIUS MONEY MARKET ETF: 15.52%
• ELI LILLY AND CO: 10.26%
• CTE PROSHARES TRUST M: 7.10%
• JOHNSON & JOHNSON: 7.07%
• CASH: 6.59%
• ABBVIE INC: 5.12%
• MERCK & CO INC: 3.97%
• UNITEDHEALTH GROUP INC: 3.65%
• HEALTH CARE SELECT SECTOR INDEX SWAP: 3.16%
• THERMO FISHER SCIENTIFIC INC: 2.77%
Income and distribution explanation
This ETF pays out cash distributions to investors. The distribution yield is approximately 1.07%. These payments usually happen quarterly, with four payouts recorded over the last 12 months. It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same thing as your total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's assets). Some investors worry about this when they see high payouts or falling prices. However, for RXL, the erosion-risk 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 positive price returns and total returns over the one-year and three-year periods.
• The erosion-risk measurement is rated as "good."
Cons
• This is a leveraged ETF, which means it can experience amplified price movements.
• The distribution yield is relatively low at approximately 1.07%.
Beginner takeaway
RXL is a leveraged health care ETF that has provided both price growth and total returns over the last three years. While it pays a small amount of regular income, investors should focus on the difference between price returns and total returns when evaluating performance.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | PROSHARES GENIUS MONEY MARKET ETF | IQMM | 15.52% |
| 2 | ELI LILLY AND CO | LLY | 10.26% |
| 3 | CTE PROSHARES TRUST M | n/a | 7.10% |
| 4 | JOHNSON & JOHNSON | JNJ | 7.07% |
| 5 | CASH | n/a | 6.59% |
| 6 | ABBVIE INC | ABBV | 5.12% |
| 7 | MERCK & CO INC | MRK | 3.97% |
| 8 | UNITEDHEALTH GROUP INC | UNH | 3.65% |
| 9 | HEALTH CARE SELECT SECTOR INDEX SWAP | n/a | 3.16% |
| 10 | THERMO FISHER SCIENTIFIC INC | TMO | 2.77% |