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Dynamic Buffer ETFs

Target Daily Protection to Rest Easier at Night

What if you could participate in flagship U.S. stock indexes, with some built-in protection? ProShares’ new patent-pending strategies allow investors to capture gains on days the market rises, up to a cap, while targeting protection on days the market falls.*

A Buffer Between You and the Unexpected

Markets move quickly. Now your downside protection strategy can, too. Invest in flagship U.S. equity indexes with a buffer designed to protect against the first 1% to as much as 5% of any loss each day.

Daily Buffer

Designed to adapt to the markets every trading day

Dynamic Protection

Targets more protection as expected volatility increases

Buy and Sell Anytime

Performance isn’t tied to lengthy holding periods

E-Commerce

A Dynamic Approach to Defensive Equity

Investors have a problem: in the face of drawdowns, many react impulsively—it's human nature. Our article explores the pitfalls of conventional buffer ETFs and what sets our Dynamic Buffer ETFs apart from other defensive equity strategies. 

Q&A

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The downside protection—or buffer—offered by these ETFs adjusts automatically to target greater protection as expected volatility rises and less protection when expected volatility falls. Both the protection of the buffer and the upside participation cap adjust proportionally—the higher the expected volatility, the larger the buffer and the higher the cap.

Buffer ETFs have grown to $65 billion in assets under management,** yet many investors remain hesitant due to structural limitations. Traditional buffer ETFs typically require purchase at the start of a fixed outcome period—often lasting a year—and holding through to the end, or they may produce unpredictable results. ProShares’ Dynamic Buffer ETFs address this challenge by offering buffer protection without requiring investors to commit to a lengthy holding period.

 

**Source: Bloomberg, as of 5/31/25.

ProShares Dynamic Buffer ETFs—FB, QB and RB—may interest any individual or professional investor seeking a level of protection from expected market volatility for their equity investments while staying invested in the S&P 500, Nasdaq-100 and Russell 2000 indexes.

ProShares Dynamic Buffer ETFs

Dynamic Buffer

FB

S&P 500 Dynamic Buffer ETF

Seeks investment results, before fees and expenses, that track the performance of the S&P 500 Daily Dynamic Buffer Index.

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Dynamic Buffer

QB

Nasdaq-100 Dynamic Buffer ETF

Seeks investment results, before fees and expenses, that track the performance of the Nasdaq-100 Dynamic Buffer Index.

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Dynamic Buffer

RB

Russell 2000 Dynamic Buffer ETF

Seeks investment results, before fees and expenses, that track the performance of the Cboe Russell 2000 Daily Buffer Index.

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Get Dynamic Buffer insights plus ProShares commentary.

*ProShares Dynamic Buffer ETFs aim to provide upside participation up to a daily cap, with a buffer designed to protect against the first 1% to as much as 5% of losses each day. 

 

Index information does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged, and one cannot invest directly in an index. 

Each ProShares Dynamic Buffer ETF’s Index employs a patent-pending Dynamic Daily Buffer Strategy that combines long exposure to an underlying broad-based index with both long and short options on the underlying index having one day to expiration. This combination targets upside participation, up to a daily Cap, while seeking to provide a level of downside protection — or “Target Buffer” — against losses ranging from the first 1% of losses to as much as the first 5% of losses each day. The Target Buffer adjusts dynamically each day based on the level of expected market volatility, targeting a greater level of protection when expected market volatility is higher. The strategy’s Cap on daily upside participation is adjusted dynamically in a similar manner and is designed to be lower when expected volatility is lower, and higher when expected volatility is higher.

There can be no guarantee that the ETF’s Dynamic Daily Buffer Strategy will provide a level of downside protection up to the Target Buffer, or that the ETF will participate in upside returns up to the daily Cap. The ETF may underperform its underlying index over short or long periods of time, potentially significantly. The ETF’s Cap and Target Buffer are each reset daily based on expectations of market volatility, and investors may experience losses to the extent market volatility exceeds such expectations. Even if the ETF’s Dynamic Daily Buffer Strategy is successful, the ETF will be exposed to underlying index losses that exceed the Target Buffer, and the ETF will not participate in underlying index gains that exceed the daily Cap. If the ETF’s Dynamic Daily Buffer Strategy is unsuccessful, the ETF will be exposed to investment losses, which could be significant. The outcomes that the Dynamic Daily Buffer Strategy seeks to provide are measured from the close of one business day to the next; shares traded intraday should not be expected to achieve the same investment outcome as the ETF. Shares traded after the Cap or Target Buffer have been reached should not expect to benefit from such Cap or Target Buffer that day.
 
Investing involves risk, including the possible loss of principal. ProShares ETFs are generally non-diversified and entail certain risks, including risks associated with the use of derivatives (swap agreements, futures contracts and similar instruments), investments in smaller companies, imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Please see summary and full prospectuses for a more complete description of risks. 
 
There is no guarantee any ProShares ETF will achieve its investment objective.
 
Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns. 
 
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. 
 
The “S&P 500” and “S&P 500 Daily Dynamic Buffer Index” are products of S&P Dow Jones Indices LLC and its affiliates and have been licensed for use by ProShares. "S&P®" is a registered trademark of Standard & Poor's Financial Services LLC ("S&P") and "Dow Jones®" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. “Nasdaq®,” “Nasdaq-100 Index®,” “Nasdaq-100®,” and “Nasdaq-100 Dynamic Buffer Index” are registered trademarks of Nasdaq, Inc. and are licensed for use by ProShare Advisors LLC. London Stock Exchange Group plc and its group undertakings are collectively, the “LSE Group” © LSE Group 2024. FTSE Russell is a trading name of certain of the LSE Group companies. The “Cboe Russell 2000 Daily Buffer Index” and “Russell®” are trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. None of these entities accept any liability for any errors or omissions in the indexes or data, and no party may rely on any indexes or data contained in this communication. No further distribution of data is permitted without the relevant company’s express written consent. These entities do not promote, sponsor or endorse the content of this communication. ProShares ETFs have not been passed on by these entities and their affiliates as to their legality or suitability. ProShares ETFs based on these indexes are not sponsored, endorsed, sold or promoted by these entities and their respective affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
 

ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor.

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