 The
ProShares Ultra MSCI EAFE (EFO) is an exchange-traded fund (ETF) that
seeks to provide daily investment results that correspond to two times
(2x) the daily performance of the MSCI EAFE Index. The fund invests
primarily in equity securities in the MSCI EAFE Index, which
represents the performance of large and mid-cap companies across 21
developed markets, excluding the US and Canada.
As an inverse
leveraged ETF, EFO is designed to generate returns that are two times
the opposite of the daily performance of the underlying index.
Therefore, if the MSCI EAFE Index decreases by 1% on a particular day,
the fund seeks to provide a 2% increase, while if the index increases
by 1%, the fund seeks to provide a 2% decrease.
It is important
to note that EFO is primarily intended for short-term trading and may
not be suitable for long-term investors due to the potential for
amplified losses in volatile market conditions. It is also subject to
the risks associated with equity investing, including market
volatility, geopolitical events, and changes in economic and
regulatory conditions. Additionally, the fund charges a management fee
and other expenses that can reduce returns.
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