ProShares Ultra VIX Short-Term Futures ETF

The ProShares Ultra VIX Short-Term Futures ETF is designed to offer leveraged exposure to short-term volatility, primarily through futures contracts on the Cboe Volatility Index, also known as the VIX. The VIX, often referred to as the "fear gauge," measures market expectations of near-term volatility as implied by S&P 500 index options. This ETF aims to provide twice the daily performance of the S&P 500 VIX Short-Term Futures Index, making it a tool for investors looking to hedge against market downturns or those anticipating short-term volatility spikes. Its primary function is to amplify the daily returns of this volatility index, making it a niche instrument for traders and strategists interested in volatility strategies. It impacts sectors sensitive to market sentiment, providing insights into investor behavior regarding risk perceptions. However, it is important to note that it is not suitable for long-term investments due to the significant compounding effects of daily leverage and potential for volatility decay. The ProShares Ultra VIX Short-Term Futures ETF plays a critical role in financial markets by allowing participants to express or hedge against volatility assumptions effectively.