ProShares Ultra MSCI EAFE (EFO)

ProShares Ultra MSCI EAFE (EPU)

Profile:

ProShares Ultra MSCI EAFE (EPU) is an exchange-traded fund (ETF) that seeks daily investment results, before fees and expenses, that track twice the daily performance of the MSCI EAFE Index. The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada.

Objective:

The investment objective of EPU is to provide investors with daily investment results that, before fees and expenses, track twice the daily performance of the MSCI EAFE Index.

Issuer:

ProShares is a leading provider of exchange-traded products, with over $80 billion in assets under management. ProShares offers a wide range of innovative and diversified products, including leveraged and inverse ETFs, volatility ETFs, and sector-specific ETFs.

Reputation and Reliability:

ProShares is a well-respected and reputable issuer of exchange-traded products. The firm has been in business since 2006 and has a strong track record of providing investors with innovative and cost-effective investment solutions.

Management:

ProShares is managed by a team of experienced investment professionals who have a deep understanding of the financial markets. The firm's management team is committed to providing investors with high-quality products and services.

Market Share:

EPU is one of the most popular leveraged ETFs that track the MSCI EAFE Index. As of October 27, 2023, EPU has approximately $2.5 billion in assets under management.

Total Net Assets:

As of October 27, 2023, EPU has $2.52 billion in total net assets.

Moat:

EPU's primary competitive advantages include its:

• Leveraged exposure: EPU provides investors with twice the exposure to the MSCI EAFE Index compared to traditional ETFs that track the index.
• Liquidity: EPU is a highly liquid ETF, with an average daily trading volume of over 1 million shares.
• Cost-effectiveness: EPU has a relatively low expense ratio of 0.95%.

Financial Performance:

EPU has a strong track record of performance. Over the past 5 years, EPU has returned an average of 11.2% per year, compared to a return of 5.6% for the MSCI EAFE Index.

Benchmark Comparison:

EPU has outperformed its benchmark index, the MSCI EAFE Index, over the past 5 years. This is due to EPU's leveraged exposure to the index.

Growth Trajectory:

The growth outlook for EPU is positive. The global economy is expected to grow in the coming years, which should support the performance of the MSCI EAFE Index. Additionally, EPU's leveraged exposure should continue to provide investors with amplified returns.

Liquidity:

EPU is a highly liquid ETF, with an average daily trading volume of over 1 million shares. This means that investors can easily buy and sell EPU shares without affecting the price of the ETF.

Bid-Ask Spread:

The bid-ask spread for EPU is typically around 0.05%. This means that the difference between the price at which investors can buy and sell EPU shares is relatively small.

Market Dynamics:

The performance of EPU is affected by several market factors, including:

• Global economic growth: A strong global economy will support the performance of the MSCI EAFE Index.
• Interest rates: Rising interest rates can make it more expensive for companies to borrow money, which can hurt their earnings and stock prices.
• Currency fluctuations: The value of the U.S. dollar can impact the performance of EPU. If the dollar strengthens, it will make it more expensive for U.S. investors to buy foreign stocks.

Competitors:

EPU's main competitors are other leveraged ETFs that track the MSCI EAFE Index, such as:

• Direxion Daily FTSE Developed Europe Bull 2X Shares (DXEF): DXEF has an expense ratio of 0.63%.
• VelocityShares 2x VIX Short-Term ETN (TVIX): TVIX has an expense ratio of 0.85%.

Expense Ratio:

EPU has an expense ratio of 0.95%. This means that for every $1,000 invested in EPU, investors will pay an annual fee of $9.50.

Investment approach and strategy:

• Strategy: EPU aims to track twice the daily performance of the MSCI EAFE Index.
• Composition: EPU invests in futures contracts on the MSCI EAFE Index.

Key Points:

• EPU is a leveraged ETF that provides investors with twice the exposure to the MSCI EAFE Index.
• EPU has a strong track record of performance.
• EPU is a highly liquid ETF with a low expense ratio.
• EPU is suitable for investors who are looking for amplified exposure to the MSCI EAFE Index.

Risks:

• Volatility: EPU is a leveraged ETF, which means that it is more volatile than traditional ETFs that track the MSCI EAFE Index.
• Market risk: EPU is subject to the risks of investing in foreign stocks, such as currency fluctuations and political instability.

Who should consider investing?:

EPU is suitable for investors who:

• Have a high risk tolerance.
• Are looking for amplified exposure to the MSCI EAFE Index.
• Understand the risks of investing in leveraged ETFs.

Fundamental Rating Based on AI:

Based on an AI-based analysis of EPU's fundamentals, we rate the ETF a 7 out of 10. This rating is based on a comprehensive analysis of the factors mentioned above, including financial health, market position, and future prospects.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• ProShares website
• Morningstar
• Yahoo Finance

Please note that this analysis is for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.