SKYU: PROSHARES ULTRA NASDAQ CLOUD COMPUTING
What this ETF is trying to do
SKYU, known as the ProShares Ultra NASDAQ Cloud Computing ETF, focuses on companies that work in cloud computing. This is a "leveraged" ETF. This means it is designed to aim for higher returns than the standard index it follows by using financial tools to boost its performance.
What the numbers show
The current price of one share is $56.23. An estimated price from roughly one year ago was $40.20. To see how much the share price alone changed, we look at the "price return." If you had invested $10,000 into just the share price one year ago, it would be worth approximately $13,987 today based on the one-year price return of 39.87%.
It is important to understand that price return and total return are different:
• Price return only measures how much the share price moves up or down.
• Total return includes those price changes plus any cash payments (distributions) you received.
Here is what the data shows:
• Year-to-date (YTD): The price return is 52.96%, and the total return is 53.52%.
• One year: The price return was 39.87%, and the total return was 40.84%.
• Three years: The price return was 233.40%, and the total return was 237.18%.
Top Holdings
The following is a partial list of the top holdings in this ETF. Please note that there are 65 total holdings in the fund, and these weights can change over time:
• ISE Cloud Computing Index Swap: 12.94%
• Cash: 11.65%
• Everpure Inc Class A: 2.82%
• Nutanix Inc Class A: 2.79%
• Arista Networks Inc: 2.61%
• Microsoft Corp: 2.38%
• MongoDB Inc Class A: 2.20%
• Amazon.com Inc: 2.10%
• Alphabet Inc Class A: 1.99%
• International Business Machines Corp: 1.71%
Income and distribution explanation
This ETF pays out cash to investors through distributions. The distribution yield is 0.41%, which means the cash payments are a small percentage of the share price. These payments usually happen every three months (quarterly). While some investors look for high yields, it is important to remember that a high yield does not guarantee you will make money overall.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the actual assets held inside an ETF drops significantly over time. For this ETF, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this fund.
Pros
• The ETF has shown very high price and total returns over the last year and three years.
• Current data shows no detected price erosion.
Cons
• This is a leveraged ETF, which can lead to more dramatic price swings.
• The holdings list provided is only a partial view of the full portfolio.
Beginner takeaway
SKYU aims to boost returns from cloud computing companies using leverage. When looking at this ETF, always check both the price return and the total return to see the full picture of how the investment performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ISE CLOUD COMPUTING INDEX SWAP | n/a | 12.94% |
| 2 | CASH | n/a | 11.65% |
| 3 | EVERPURE INC CLASS A | P | 2.82% |
| 4 | NUTANIX INC CLASS A | NTNX | 2.79% |
| 5 | ARISTA NETWORKS INC | ANET | 2.61% |
| 6 | MICROSOFT CORP | MSFT | 2.38% |
| 7 | MONGODB INC CLASS A | MDB | 2.20% |
| 8 | AMAZON.COM INC | AMZN | 2.10% |
| 9 | ALPHABET INC CLASS A | GOOGL | 1.99% |
| 10 | INTERNATIONAL BUSINESS MACHINES CORP | IBM | 1.71% |