The ProShares Ultra Bloomberg Natural Gas (BOIL) is an exchange-traded fund designed to deliver two times (2x) the daily performance of the natural gas market. The ETF is managed by ProShares and trades under the ticker BOIL on the NYSE Arca.

Classified as a leveraged commodities ETF, the fund uses financial derivatives to provide investment results corresponding to 200% of the daily return of the Bloomberg Natural Gas Subindex. Its strategy enables investors to gain amplified exposure to natural gas price movements without directly trading futures contracts.

The ETF follows an active management approach and seeks to deliver 2x the daily return of its benchmark, before fees and expenses. Because its objective is measured on a daily basis, returns over periods longer than one day may differ significantly from twice the benchmark's cumulative return due to the effects of compounding.

Diversification and sector exposure

BOIL provides exposure primarily associated with:

• Natural gas.

• Commodities.

• Energy.

• Futures contracts.

• Leveraged strategies.

• Energy markets.

• Derivatives.

• Active management.

The fund primarily holds natural gas futures contracts and may also invest in cash, U.S. Treasury securities, and other short-term instruments to satisfy collateral and liquidity requirements.

The ETF's performance seeks to provide leveraged daily exposure to the natural gas market but may differ from spot natural gas prices because of futures-market structure and roll yield.

Structure and costs

BOIL shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund uses futures contracts, swaps, and other derivatives to obtain leveraged exposure to the natural gas market, rebalancing its portfolio daily to maintain its investment objective.

The ETF charges a management fee as outlined in its prospectus and does not apply a performance fee.

History and evolution of the ETF

The ProShares Ultra Bloomberg Natural Gas was launched in 2011 to provide investors with an exchange-traded vehicle for leveraged exposure to the natural gas market. Since inception, the fund has been widely used by investors and traders implementing short-term tactical strategies focused on the energy sector.

In recent years, weather-related demand, changes in natural gas production, liquefied natural gas (LNG) exports, electricity generation needs, and geopolitical developments have continued to play a significant role in shaping natural gas prices and, consequently, the ETF's performance.

Additional Information

ProShares Ultra Bloomberg Natural Gas (United States) is an exchange-traded fund (ETF), with assets under management totaling $400.52 million.

Over the past 12 months, ProShares Ultra Bloomberg Natural Gas recorded a return of -63.93%, with its price trading between $12.14 and $43.62 during the same period.

The ETF is traded under the ticker BOIL.