The ProShares Ultra VIX Short-Term Futures ETF (UVXY) is an exchange-traded fund designed to deliver 1.5 times (1.5x) the daily performance of an index composed of short-term VIX futures contracts. The ETF is managed by ProShares and trades under the ticker UVXY on the Cboe BZX Exchange.

Classified as a leveraged volatility ETF, the fund uses financial derivatives to provide amplified exposure to futures contracts linked to the S&P 500 VIX Short-Term Futures Index. Its strategy gives investors exposure to expected U.S. equity market volatility rather than to the spot VIX Index itself.

The ETF follows an active management approach and seeks to deliver 1.5 times 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 1.5 times the benchmark's cumulative return due to the effects of compounding.

Diversification and sector exposure

UVXY provides exposure primarily associated with:

• Volatility.

• VIX futures.

• Derivatives.

• Leveraged strategies.

• Risk management.

• U.S. equity market.

• Portfolio hedging.

• Active management.

The portfolio primarily consists of first- and second-month VIX futures contracts, along with cash-equivalent instruments used to support the fund's investment strategy.

The ETF generally performs well during periods of sharply rising implied market volatility but may experience significant losses during low-volatility environments because of futures roll costs and the effects of daily compounding.

Structure and costs

UVXY shares trade on the secondary market on the Cboe BZX Exchange 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 VIX futures contracts, swaps, and other derivatives to obtain its leveraged exposure, 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 VIX Short-Term Futures ETF was launched in 2011 to provide investors with leveraged exposure to expected U.S. equity market volatility through VIX futures contracts.

Since inception, the fund has become one of the most actively traded volatility ETFs, widely used by traders for short-term tactical strategies and portfolio hedging.

In recent years, periods of heightened market volatility, shifts in monetary policy, geopolitical crises, and significant equity market swings have continued to drive investor interest in ETFs linked to VIX futures.

Additional Information

ProShares Ultra VIX Short-Term Futures ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $310.75 million.

Over the past 12 months, ProShares Ultra VIX Short-Term Futures ETF recorded a return of -66.64%, with its price trading between $9.73 and $65.65 during the same period.

The ETF is traded under the ticker UVXY.