ETF EUO compounding the evolution of the inverse exchange rate for the USD/EUR currency pair

UltraShort Euro ProShares ETF (EUO ETF) It gives a -200% exposure against the daily evolution of the EURUSD spot rate measured by Bloomberg. UltraShort Euro ProShares ETF (EUO ETF)Ltd., which is traded on NYSEArca, with an annual management cost of 0.99 percent.

EUO Factset Analytics Insight

EUO provides 2x daily inverse exposure for worth USD/EUR. Due to daily rebalancing, the effects of formation and path dependence affect the fund’s long-term return, meaning that investors who hold the fund for longer than one day may not achieve a 200% exposure.

As a result, EUO may not be suitable for those looking for predictable and long-term returns. Also keep in mind that EUO refers to the EUR/USD exchange rate reported by Bloomberg at 16:00 ET.

investment objectives

ProShares UltraShort Euro strives for daily investment results, before fees and expenses, which are twice the opposite (-2x) of the daily evolution of the EUR/USD rate.

Important considerations

This short ProShares ETF strives for a return equal to twice the return of its underlying benchmark (target) for one day, measured from the NAV calculation to the next day.

Due to the composition of daily returns, holding periods longer than 1 day can result in returns that differ significantly from target return, and ProShares returns over non-day periods are likely to differ in quantity and possibly direction from target return. for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with fluctuating parameters.

Investors should monitor their holdings frequently on a daily basis. Investors should refer to the prospectus for more information on calculating the return and risks of investing in this product.

Fund Summary

The fund seeks to achieve its investment objective, under normal market conditions, by obtaining short exposures to its benchmark index through futures contracts on its base currency. You will not invest directly in any currency.

Trade the EUO ETF

UltraShort Euro ProShares ETF (EUO ETF) Only available for purchase in the United States. For this reason, it is not available in Swedish online brokers. CMC . Markets However, trade progresses in EUO ETF.

also AvaTrade Trade offers with UltraShort Euro ProShares ETF (EUO ETF) in the form of contracts for difference. to AvaTrade.

also IG However, trade progresses in UltraShort Euro ProShares ETF (EUO ETF). to IGs ETF Checker.

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