Share-split context: A reverse split was recorded on Nov 20, 2025 with coefficient 0.25. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

Understanding the ProShares UltraPro Short S&P 500 (SPXU)

The ProShares UltraPro Short S&P 500 (SPXU) is a leveraged and inverse ETF. This means it is designed to move in the opposite direction of the S&P 500 index and amplify those movements. It is primarily used by investors who believe the S&P 500 will go down.

What the Numbers Show

The recent performance of SPXU shows a significant decline in share price. Because this fund has a history of share splits, we look at split-adjusted returns to see how it has performed:

• Year-to-Date (YTD): The price return is -33.73%, while the total return is -31.77%.

• One Year: The price return is -38.43%, and the total return is -35.34%.

• Three Year: The price return is -86.00%, and the total return is -83.19%.

• Five Year: The total return is -87.43%.

Price return measures only the change in the share price. Total return includes the impact of distributions.

Income and Distribution Explanation

SPXU has a distribution yield of approximately 6.61%. Over the last 12 months, it has made 4 payments, usually on a quarterly basis.

It is important for beginners to know that a high distribution yield can be misleading. In this case, the total returns are significantly lower than the distribution yield because the share price has declined sharply. This shows that the cash payments did not offset the loss in share value.

Price and NAV Erosion

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.

However, the data shows a severe erosion-risk flag. This warning was triggered because of the split-adjusted price trend and an erosion score of 30, which is labeled as "significant price erosion."

Additionally, SPXU has a history of reverse splits (6 events in total). In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the per-share price. This mechanical increase does not restore lost investment value. The most recent reverse split occurred on November 20, 2025.

Pros

• Provides a way to bet against the S&P 500.

• Offers amplified (leveraged) movements for short-term strategies.

• Provides regular quarterly cash distributions.

Cons

• Significant historical price decline over one, three, and five years.

• High risk of price erosion.

• Frequent reverse splits indicate a history of falling share prices.

• An income rating grade of "F."

Beginner Takeaway

SPXU is a high-risk tool designed for specific market views, not a traditional long-term investment. While it pays a distribution, the severe price decline and the presence of a severe erosion-risk flag show that the principal value has dropped significantly over time.