ETF Report: ProShares Ultra High Yield (UJB)

What this ETF is trying to do

The ProShares Ultra High Yield (UJB) is an exchange-traded fund (ETF). This specific ETF is classified as "leveraged," which means it uses financial tools to try to amplify the performance of its underlying assets.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This only tracks how much the share price itself has changed.

• Total Return: This includes both the change in share price *and* any cash distributions (dividends) paid out to investors.

For UJB, the numbers show different results depending on how you look at them:

• Year-to-Date (YTD): The price return is approximately -2.22%, while the total return is approximately -0.46%.

• One Year: The price return was approximately -2.47%, but the total return was positive at approximately 0.71%.

• Three Years: The price return was approximately 23.00%, and the total return was higher at approximately 34.55%.

To give you an idea of the price movement, the current price is $77.25. The estimated price from roughly one year ago was approximately $79.21.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly. This is called the distribution yield. For UJB, the distribution yield is approximately 3.24%. Over the last 12 months, there were 4 distributions, which usually happen on a quarterly basis.

It is important to remember that a high distribution yield is not the same thing as total return. A fund can pay out cash, but if the share price drops significantly, the investor's total value might still go down.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing.

StockValueFinder uses an erosion-risk score to measure this risk. UJB has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag for this ETF.

Pros

• The three-year total return has been positive at approximately 34.55%.

• The fund has a "good" erosion severity rating.

Cons

• This is a leveraged ETF, which can lead to higher volatility.

• The year-to-date price return has been negative.

Beginner takeaway

When studying UJB, notice the difference between price return and total return. Because this fund pays distributions, the total return is often different from the price movement alone. Always look at both numbers to get a full picture of how the fund has performed.