Share-split context: A forward split was recorded on May 11, 2012 with coefficient 2. 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 7-10 YEAR TREASURY (UST)

What this ETF is trying to do

The UST ETF is a type of investment called an ETF. This specific fund is labeled as "leveraged." This means it is designed to move in a different way than standard Treasury funds. It tracks 7-10 year Treasury bonds.

What the numbers show

When looking at an ETF, it is important to know the difference between "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.

For UST, the numbers show different results depending on how much time has passed:

• Year-to-Date (YTD): The price return is approximately -13.13%, while the total return is approximately -11.36%.

• One Year: The price return is approximately -13.99%, while the total return is approximately -11.10%.

• Three Years: The price return is approximately -5.37%, while the total return is approximately 5.10%.

Because this ETF has a history of "forward splits," we use split-adjusted returns. In a forward split, one old share becomes multiple new shares. This changes the price per share, but it does not change how much your total investment is worth at that exact moment.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. This ETF has a distribution yield of approximately 3.69%. Over the last 12 months, it has made 4 distributions, usually on Wednesdays.

It is important to remember that a high distribution yield does not mean you are making a profit. You must look at the total return to see how the investment performed overall after including those payments.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF declines. StockValueFinder uses an "erosion-risk score" to measure this risk. This ETF has an erosion score of 75, which is labeled as "mild price erosion." While the share price has declined in some timeframes, there is no severe erosion-risk flag for this fund.

Pros

• The ETF provides regular cash distributions (usually quarterly).

• Over a three-year period, the total return was positive at approximately 5.10%, even though the share price itself was down.

Cons

• The ETF is leveraged, which can lead to larger price swings.

• The one-year and year-to-date price returns have been negative.

• The income rating grade is a "D."

Beginner takeaway

When studying UST, notice that the total return is often higher than the price return. This happens because the cash distributions help offset some of the share-price decline. However, because this is a leveraged fund with mild price erosion, the value of the shares can change significantly. Always distinguish between the price of a share and your total return.