Geared Investing

Pioneering leveraged and inverse ETFs

Since 2006, ProShares’ line-up of ETFs has helped investors use leverage to increase their buying power and inverse strategies to profit during or protect a portfolio from declines.

why leverage ? Increase market exposures with leveraged ETFs

Overweight holdings within a sector

Track broad market indexes, or narrow sectors or industries

Designed to magnify the one day returns of a benchmark

why inverse ? Move opposite a benchmark with inverse ETFs

Designed to increase in value as the benchmark or stock they follow falls

Hedge against a company or sector decline

Seeks the inverse of the one day return of a benchmark

Go Further

Explore ProShares three part series on portfolio hedging

A hedge is an investment intended to move in the opposite direction of an asset that’s considered to be at risk in a portfolio. A hedge provides inverse exposure so if the at-risk investment should decline in value, the hedge is designed to increase in value and offset potential losses in a portfolio.
Part One: The Significance of Portfolio Hedging

Geared Investing Resources

Geared Investing: An introduction to leveraged and inverse funds

Gain an better understanding of some of the benefits and risks of using geared products, including geared mutual funds and ETFs.
Read More
Get the latest perspectives and updates.

Geared (leveraged or short) ProShares ETFs seek returns that are a multiple of (e.g., 2x or -2x) the return of a benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmakrs. Investors should monitor their holdings as frequently as daily. For more information on risks, please read the prospectus.

Investing involves risk, including the possible loss of principal. Geared ProShares ETFs are non-diversified and entail certain risks, including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Short ProShares ETFs should lose money when their benchmarks or indexes rise. Please see their summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.

Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. Spearate ProShares Trust II prospectuses are available for Volatility, Commodity, and Currency ProShares.

ProShares ETFs (ProShares Trust and ProShares Trust II) are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.

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