 The
ProShares UltraShort MSCI EAFE (EFU) is an exchange-traded fund (ETF)
that seeks to provide twice the inverse daily performance of the MSCI
EAFE Index. The MSCI EAFE Index is a benchmark of developed market
equities, including companies from Europe, Australasia, and the Far
East.
EFU uses short positions in equity index swaps, futures
contracts, and other derivatives to achieve its investment objective.
As a leveraged ETF, EFU is designed to magnify the returns and losses
of its underlying index, making it a potentially attractive option for
investors looking to hedge against or profit from declines in the MSCI
EAFE Index.
However, investors should be aware of the risks
associated with leveraged ETFs, including the potential for losses to
exceed the initial investment and the possibility of tracking errors
and other operational risks. As with any investment, it is important
to thoroughly research and understand the characteristics and risks of
EFU before investing.
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