Share-split context: A reverse split was recorded on Nov 13, 2015 with coefficient 0.333333. 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 Ultra MSCI Brazil Capped ETF (UBR)

What this ETF is trying to do

The ProShares Ultra MSCI Brazil Capped ETF (ticker: UBR) is an exchange-traded fund designed to provide leveraged exposure to the MSCI Brazil index. Because it is labeled as a "leveraged" ETF, it aims to amplify the performance of its underlying index. This means it seeks to move more significantly than the index itself, though this also increases the risk of larger losses.

What the numbers show

The performance data for UBR shows significant growth over various timeframes. It is important to distinguish between price return (the change in the share price) and total return (which includes the impact of distributions).

• Year-to-Date (YTD): The price return is approximately 60.36%, while the total return is approximately 62.47%.

• One-Year: The price return is approximately 90.27%, while the total return is approximately 93.77%.

• Three-Year: The price return is approximately 81.93%, while the total return is approximately 101.31%.

• Five-Year: The five-year total return is approximately 89.37%.

Because this ETF has a history of reverse splits, the "price 12 months ago" cannot be estimated using a simple reconstructed price. Instead, we look at the split-adjusted percentage returns provided above to understand how the value has changed.

Income and distribution explanation

UBR provides cash distributions to investors. The current distribution yield is approximately 1.32%. Over the last 12 months, there were 4 distributions, which usually occur on a quarterly basis. The trailing distributions amount to approximately $0.56 per share.

When looking at yield, it is important to remember that a distribution yield describes the cash paid out relative to the share price; it is not the same as the total return of the investment.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). 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, looking at the 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 present.

Pros

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

• Positive Erosion Score: The current measurements indicate no detected price erosion.

Cons

• Leverage Risk: As a leveraged ETF, the fund is designed to amplify movements, which can lead to higher volatility.

• Split History: The fund has a history of reverse splits (where multiple old shares are combined into fewer new shares).

Beginner takeaway

UBR is a leveraged ETF focused on the Brazilian market. While it has shown very high price and total returns recently, its leveraged nature means it may experience significant price swings. Investors should note the difference between the share-price growth and the total return provided by distributions.