ProShares Launches Firm’s First Leveraged Thematic ETFs

Rhea-AI Summary

ProShares has launched its first leveraged thematic ETFs: ProShares Ultra Nasdaq Cybersecurity (UCYB) and ProShares Ultra Nasdaq Cloud Computing (SKYU). Each fund aims for double (2x) the daily performance of their respective indices: the Nasdaq CTA Cybersecurity Index and the ISE CTA Cloud Computing Index. These ETFs target growing sectors accelerated by remote computing needs due to the pandemic. ProShares manages a large lineup of ETFs, now including these innovative, leveraged investment opportunities, totaling over $45 billion in assets.

Positive

• Launch of two leveraged ETFs (UCYB and SKYU) targeting lucrative sectors like cybersecurity and cloud computing.
• ProShares' established presence in thematic investing, with over $45 billion in assets.

Negative

• Investors face risks due to leverage and market volatility associated with these ETFs.
• Potential for significant return deviations over periods longer than one day due to compounding effects.

Today, premier ETF provider ProShares launched its first leveraged thematic investing ETFs.

ProShares Ultra Nasdaq Cybersecurity (UCYB) seeks investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Nasdaq CTA Cybersecurity Index. ProShares Ultra Nasdaq Cloud Computing (SKYU) seeks investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the ISE CTA Cloud Computing Index.

“The growing need for remote computing, and our increased reliance on secure internet communications and connectivity—existing themes accelerated by the coronavirus pandemic—have expanded the already significant investment opportunities in the cybersecurity and cloud computing industries,” says ProShares CEO Michael L. Sapir. “Our new ETFs will offer investors a way to gain leveraged exposure to these rapidly changing industries in a transparent ETF format.”

UCYB’s index provides access to companies classified as “cybersecurity” by the Consumer Technology Association (“CTA”)—companies focused primarily on the building, implementation and management of technologies to protect networks, computers and mobile devices from cyber threats. SKYU’s index provides access to companies classified as “cloud computing” by the CTA—firms providing Infrastructure-as-a-Service (servers, storage, and networks), Platform-as-a-Service (systems for the creation of online software) and Software-as-a-Service (software applications delivered over the internet) to their customers and end users. Both indexes are managed by Nasdaq.

ProShares ETF	Ticker	Daily Exposure	Index
ProShares Ultra Nasdaq Cybersecurity	UCYB	2x	Nasdaq CTA Cybersecurity Index
ProShares Ultra Nasdaq Cloud Computing	SKYU	2x	ISE CTA Cloud Computing Index

ProShares is a leader in thematic investing, with eight ETFs in its lineup. UCYB and SKYU build on the firm’s success in this space by adding new leveraged opportunities to the company’s strategic lineup of retail disruption, infrastructure, pet care and transformational changes ETFs.

About ProShares

ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $45 billion in assets. The company is the leader in strategies such as dividend growth, interest rate hedged bond and geared (leveraged and inverse) ETF investing. ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.

Important Information

These leveraged ProShares ETFs seek returns that are 2x the return of their underlying benchmarks (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, holding periods of greater than one day can result in returns that are significantly different than the target return and 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 benchmarks. Investors should monitor their holdings as frequently as daily. Investors should consult the prospectus for further details on the calculation of the returns and the risks associated with investing in this product.

Investing involves risk, including the possible loss of principal. Leveraged 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. 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.

Natural or environmental disasters, including pandemics and epidemics, have been and can be highly disruptive to economies and markets and have recently led, and may continue to lead, to increased market volatility and significant market losses.

Cybersecurity companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services, loss of patent protections, cyclical market patterns, evolving industry standards, and frequent new product introductions.

Cloud computing companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services, loss of patent protections, cyclical market patterns, evolving industry standards, frequent new product introductions, evolving regulation of the Internet and new privacy laws. Such companies are also susceptible to operational and information security risks.

These funds concentrate their investments in certain sectors. Narrowly focused investments typically exhibit higher volatility.

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.

Nasdaq^® is a registered trademark of Nasdaq, Inc. and is licensed for use by ProShare Advisors LLC. ProShares ETFs have not been passed on by Nasdaq, Inc. or its affiliates as to their legality or suitability. ProShares ETFs based on the Nasdaq CTA Cybersecurity Index^SM and the ISE CTA Cloud Computing Index are not issued, sponsored, endorsed, sold, or promoted by Nasdaq, Inc. or its affiliates, and they make no representation regarding the advisability of investing in ProShares ETFs. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.

ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210121005202/en/

FAQ

What is the goal of ProShares Ultra Nasdaq Cybersecurity ETF (UCYB)?

UCYB aims to achieve 2x the daily performance of the Nasdaq CTA Cybersecurity Index.

What is the objective of ProShares Ultra Nasdaq Cloud Computing ETF (SKYU)?

SKYU seeks to provide 2x the daily performance of the ISE CTA Cloud Computing Index.

What are the key risks associated with investing in UCYB and SKYU?

Investors face risks related to leverage, market volatility, and potential return deviations over time.

Why did ProShares launch these new ETFs now?

The launch responds to the growing demand for cybersecurity and cloud computing solutions accelerated by the pandemic.

How many ETFs does ProShares currently offer?

ProShares manages one of the largest lineups of ETFs, with over 45 billion in assets.