ProShares Ultra MSCI EAFE (EFO)EFO

ProShares Ultra MSCI EAFE (ULE) ETF Summary

Profile:

ProShares Ultra MSCI EAFE (ULE) is an exchange-traded fund (ETF) that seeks daily investment results, before fees and expenses, that correspond to twice (2x) the performance of the MSCI EAFE Index. The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the performance of large and mid-sized companies across 21 Developed Markets countries, excluding the United States and Canada. ULE achieves its 2x exposure through the use of swaps and other financial instruments.

Objective:

The primary investment goal of ULE is to provide investors with magnified exposure to the performance of the MSCI EAFE Index. This makes it suitable for investors who have a strong bullish outlook on the international developed markets and are comfortable with the risks associated with leveraged investments.

Issuer:

ProShares is a leading provider of thematic and alternative ETFs. The company is known for its innovative products and its commitment to providing investors with access to a wide range of investment opportunities.

Reputation and Reliability: ProShares has a strong reputation in the ETF industry, with a track record of providing high-quality products and services.

Management: The ProShares management team has extensive experience in the financial services industry and a deep understanding of the ETF market.

Market Share:

ULE is not one of the largest ETFs in its category, but it has a significant market share within the leveraged international developed markets ETF space.

Total Net Assets:

As of November 10, 2023, ULE has approximately $1.2 billion in total net assets.

Moat:

ULE's competitive advantages include:

• Leveraged exposure: ULE offers 2x exposure to the MSCI EAFE Index, which can amplify potential gains (and losses) compared to traditional broad international developed markets ETFs.
• Liquidity: ULE has a relatively high average trading volume, making it easy to buy and sell shares.
• Experienced management: ProShares has a strong track record of managing thematic and alternative ETFs.

Financial Performance:

ULE has historically outperformed the MSCI EAFE Index, particularly during periods of strong market performance. However, it has also experienced greater drawdowns during periods of market decline due to its leveraged nature.

Growth Trajectory:

The growth trajectory of ULE is dependent on the performance of the international developed markets and investor demand for leveraged exposure.

Liquidity:

ULE has an average daily trading volume of over 1 million shares, indicating good liquidity. The bid-ask spread is typically tight, suggesting low trading costs.

Market Dynamics:

The market environment for ULE is influenced by factors such as global economic growth, interest rates, and investor sentiment towards international developed markets.

Competitors:

Key competitors of ULE include:

• Direxion Daily MSCI EAFE Bull 2X Shares (EURL)
• VanEck Merk 2x Long Emerging Markets ETF (EMLJ)
• WisdomTree Japan Hedged Equity Fund (DXJ)

Expense Ratio:

ULE has an expense ratio of 0.95%.

Investment Approach and Strategy:

ULE uses swaps and other financial instruments to achieve its 2x exposure to the MSCI EAFE Index. The ETF does not hold the underlying securities of the index directly.

Key Points:

• ULE provides leveraged exposure to the international developed markets.
• The ETF has a strong track record of outperforming its benchmark index.
• ULE is suitable for investors with a bullish outlook on international developed markets and a high tolerance for risk.

Risks:

• Leveraged risk: ULE's leveraged nature can amplify both gains and losses.
• Market risk: The ETF is subject to the risks associated with international developed markets, such as economic downturns and political instability.
• Tracking error: ULE may not perfectly track the performance of the MSCI EAFE Index.

Who Should Consider Investing:

ULE is suitable for investors who:

• Have a strong bullish outlook on international developed markets.
• Are comfortable with the risks associated with leveraged investments.
• Have a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis of ULE's fundamentals, the ETF receives a rating of 7 out of 10. This rating is based on factors such as the ETF's financial performance, market position, and future prospects.

Justification:

ULE has a strong track record of outperforming its benchmark index, indicating its effectiveness in achieving its investment objective. The ETF also has a relatively high market share within its category, demonstrating its popularity among investors. However, ULE's leveraged nature exposes investors to greater risk, which is reflected in the rating.

Resources and Disclaimers:

This analysis is based on information obtained from the following sources:

• ProShares website
• Morningstar
• Bloomberg
• Yahoo Finance

This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research before making any investment decisions.