Share-split context: A forward split was recorded on Jan 13, 2022 with coefficient 4. 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 Consumer Staples (UGE)

What this ETF is trying to do

The ProShares Ultra Consumer Staples ETF (UGE) is a type of fund known as a leveraged ETF. This means it uses financial tools to try and amplify the performance of consumer staples companies—the businesses that sell everyday items like food, drinks, and household goods.

What the numbers show

When looking at how this ETF has performed, it is important to look at two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and any cash distributions (dividends) paid out.

According to the data:

• Year-to-Date (YTD): The price return is approximately 6.39%, while the total return is higher at about 8.00%.

• One Year: The price return was approximately 4.15%, and the total return was about 6.52%.

• Three Years: The price return was approximately 30.12%, and the total return was about 38.00%.

It is also important to note that 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.

Income and distribution explanation

This ETF pays out cash to investors, which is called a distribution. The distribution yield is currently about 2.29%. This number tells you how much cash was distributed relative to the current share price. Over the last 12 months, there were four distributions, usually paid out quarterly.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Some investors worry about this because if the share price drops significantly, it can be hard to recover that value.

For UGE, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Top Holdings

The following are the top holdings in this portfolio (note that this is a partial list):

• CASH: 17.86%

• WALMART INC: 5.49%

• COSTCO WHOLESALE CORP: 4.79%

• PROCTER & GAMBLE CO: 4.00%

• COCA-COLA CO: 3.95%

• PHILIP MORRIS INTERNATIONAL INC: 3.53%

• TARGET CORP: 2.38%

• ALTRIA GROUP INC: 2.37%

• COLGATE-PALMOLIVE CO: 2.32%

• MONDELEZ INTERNATIONAL INC CLASS A: 2.22%

Pros

• The ETF has shown positive total returns over the one-year and three-year periods.

• The erosion-risk measurement is currently considered "good."

Cons

• This is a leveraged ETF, which can be more volatile than standard funds.

• The five-year total return was approximately -17.88%.

Beginner takeaway

When looking at UGE, remember that price returns and total returns are different. While the share price moves one way, the cash distributions move another. Always look at the total return to see the full picture of how a fund has performed.