Proshares Ultra Ether ETF A Comprehensive Investment Guide

The ProShares Ultra Ether ETF is an innovative investment tool that allows you to gain two times the daily return of Ether, the second-largest cryptocurrency by market capitalization.

It's designed to provide investors with a way to potentially profit from the price movements of Ether, but keep in mind that it's a leveraged product, which means it can also amplify losses.

The ETF is listed on the NYSE Arca and has a net expense ratio of 0.95%.

Investing in the ProShares Ultra Ether ETF requires a minimum investment of $100,000, a relatively high threshold that may not be accessible to all investors.

The ProShares Ultra Ether ETF is a fund that's been around since June 7, 2024. It's a part of the ProShares Trust family.

The fund's shares are denominated in USD and are domiciled in the United States. This is a key detail to keep in mind if you're considering investing in this fund.

Here are some key details about the fund:

ProShares Ultra Ether ETF has a portfolio turnover rate of 0%, indicating that it holds its assets for a long time. This is significantly lower than the average portfolio turnover of 61% for the Digital Assets category.

The fund has a relatively low expense ratio of 0.94%, which is a good thing for investors. However, this low expense ratio comes with a trade-off: the fund is leveraged, meaning it uses borrowed money to amplify its investments.

In December 2024, the fund returned -19.2%, earning it a grade of F. This is significantly lower than the average return of -7.8% for the Digital Assets category. The fund's performance is tracked against the Bloomberg Ethereum TR USD index, which has a weighting of 200% for the fund.

Here are some key performance metrics for the fund:

The fund has a relatively simple portfolio composition, with only two holdings. It also has a low allocation to foreign issues, with 0.0% of its assets invested abroad.

ProShares Ultra Ether ETF allows you to gain 2x daily exposure to the price movements of Ether, the native cryptocurrency of the Ethereum network.

The fund's holdings are designed to track the 2x daily performance of Ether, which means that if the price of Ether goes up, the fund's value will also increase, and vice versa.

The fund's distributions are made quarterly, and the amount of the distribution will depend on the fund's performance over the previous quarter.

The Top 10 Holdings of a particular investment are a crucial aspect to consider. According to the data, the top holding is a Repurchase Agreement with a percentage of 6.41%.

The next four holdings are also Repurchase Agreements, with percentages of 4.94%, 2.47%, 1.97%, and 0.49% respectively. These holdings are significant, taking up a substantial portion of the overall investment.

In fact, the top five holdings are all Repurchase Agreements, indicating a high concentration of this type of investment in the portfolio. This is worth noting, as it may have implications for the investment's overall risk and return.

Here are the Top 10 Holdings in a concise list:

The CME Micro Ether and CME Ether holdings are a notable exception to the Repurchase Agreement trend, indicating a more diversified investment strategy.

The first mutual fund was established in 1893 by Charles D. Barney in the United States.

Mutual funds have a long history of helping investors diversify their portfolios and achieve their financial goals.

The first closed-end fund was launched in 1899, providing a unique investment opportunity for investors.

In the early 20th century, the concept of open-end funds emerged, allowing investors to buy and sell shares at a net asset value (NAV) based on the fund's portfolio.

Open-end funds quickly gained popularity, and by the 1950s, they had become a staple in the investment landscape.

The introduction of the 401(k) retirement plan in 1978 marked a significant shift in the way Americans invested for their retirement, with mutual funds becoming a key component of these plans.

Today, mutual funds and exchange-traded funds (ETFs) continue to be popular investment options, offering a wide range of asset classes and investment strategies to suit various investor needs.