The ProShares UltraShort MSCI Brazil Capped ETF (BZQ) is an exchange-traded fund designed to deliver approximately two times the inverse daily performance of an index composed of Brazilian equities. The ETF is managed by ProShares and trades under the ticker BZQ on the NYSE Arca.

Classified as a leveraged inverse single-country ETF, the fund is intended for investors seeking tactical exposure to declines in the Brazilian stock market without directly engaging in short-selling or using individual derivatives contracts.

The ETF follows an active management approach and utilizes derivatives to seek daily investment results corresponding to approximately -200% of the daily performance of the MSCI Brazil 25/50 Index, a benchmark composed of some of the largest publicly traded companies in Brazil.

Diversification and sector exposure

BZQ provides exposure primarily associated with:

• Brazilian equities.

• Inverse investment strategies.

• Leveraged ETFs.

• Financial services.

• Energy.

• Materials and mining.

• Commodities.

• Financial derivatives.

The fund’s performance is directly tied to the Brazilian equity market. Because it employs an inverse strategy, declines in the underlying benchmark generally benefit the ETF, while advances in Brazilian stocks typically have a negative impact on returns.

Brazil’s economic profile, which includes significant exposure to financial institutions, energy companies, and commodity producers, plays an important role in shaping the behavior of the underlying index.

Structure and costs

BZQ 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).

To achieve its investment objective, the fund uses swaps, futures contracts, and other derivative instruments linked to the underlying benchmark. 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 UltraShort MSCI Brazil Capped ETF was launched in 2009 amid growing demand for products that provide tactical exposure to international equity markets. Since inception, the fund has offered investors a way to gain inverse exposure to Brazilian equities through a U.S.-listed exchange-traded vehicle.

Over the years, the ETF has reflected multiple economic and political cycles in Brazil, including periods of economic expansion, fiscal challenges, commodity-price fluctuations, and shifts in the global investment environment.

Additional Information

ProShares UltraShort MSCI Brazil Capped ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $2.34 million.

Over the past 12 months, ProShares UltraShort MSCI Brazil Capped ETF recorded a return of -55.19%, with its price trading between $7.67 and $25.05 during the same period.

The ETF is traded under the ticker BZQ.