Benchmark Change for its Oil ETFs
Sep 08, 2020
ProShares Announces Benchmark Change for its Oil ETFs
Bethesda, MD – September 9, 2020 – ProShares, a premier provider of ETFs, announced today that ProShares Ultra Bloomberg Crude Oil (UCO) and ProShares UltraShort Bloomberg Crude Oil (SCO) ETFs will change their benchmark effective after the market closes on September 16, 2020. The new benchmark for these funds is the Bloomberg Commodity Balanced WTI Crude Oil Index (ticker: BCBCLI). Following this benchmark change, each Fund will seek exposure to the WTI crude oil futures contracts that are included in its new benchmark.
The Bloomberg Commodity Balanced WTI Crude Oil Index aims to track the performance of three separate contract schedules for WTI crude oil futures which are reset on a semi-annual basis. One third of the index follows a monthly roll schedule, the second third of the index follows a June annual roll schedule, while the remaining third follows a December annual roll schedule.
Benchmark Change Details
| Ticker | ProShares ETF Name | Current Benchmark | New Benchmark |
|---|---|---|---|
| UCO | Ultra Bloomberg Crude Oil | Bloomberg WTI Crude Oil Subindex | Bloomberg Commodity Balanced WTI Crude Oil Index |
| SCO | UltraShort Bloomberg Crude Oil |
Neither the Funds nor their current or new benchmarks are intended to track the performance of the spot price of WTI crude oil* and therefore the Funds should be expected to perform very differently from the spot price of WTI crude oil. Additionally, until completion of the benchmark change, the Funds will not track the performance of the Bloomberg WTI Crude Oil Subindex.
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 $40 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.
Geared (leveraged or short) ProShares ETFs seek returns that are a multiple of (e.g., 2x or -2x) the return of a benchmark (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.
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.
Investing involves risk, including the possible loss of principal.Geared 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. Short ProShares ETFs should lose money when their benchmarks or indexes rise. 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.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.
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