ProShares Trust II Files 2023 Annual Report on Form 10-K
Ticker: UCO · Form: 10-K · Filed: Feb 28, 2024 · CIK: 1415311
Sentiment: neutral
Topics: 10-K, ProShares Trust II, ETF, Financial Report, Swap Agreements
TL;DR
<b>ProShares Trust II has filed its 2023 annual report (10-K) detailing financial positions, swap agreements, and past ETF liquidations.</b>
AI Summary
ProShares Trust II (UCO) filed a Annual Report (10-K) with the SEC on February 28, 2024. The filing is for ProShares Trust II, a company incorporated in Delaware. The fiscal year end for the company is December 31, 2023. The company's business address is 7501 Wisconsin Ave, Suite 1000, Bethesda, MD 20814. The filing includes information on swap agreements and their associated financing rates as of December 31, 2022 and 2023. The filing mentions the liquidation of ProShares Short Euro ETF and ProShares UltraShort Australian Dollar ETF on May 12, 2022.
Why It Matters
For investors and stakeholders tracking ProShares Trust II, this filing contains several important signals. This 10-K filing provides a comprehensive overview of ProShares Trust II's financial performance and operational activities for the fiscal year ending December 31, 2023, which is crucial for investors to assess the fund's stability and strategy. The details on swap agreements and counterparty information are important for understanding the fund's risk exposure and how it manages its investments in relation to benchmark indices.
Risk Assessment
Risk Level: low — ProShares Trust II shows low risk based on this filing. The filing is a standard 10-K for an ETF trust, with no immediate red flags indicating high risk. The information provided is routine financial reporting.
Analyst Insight
Review the detailed notes on swap agreements and counterparty exposures to understand the specific risks and strategies employed by ProShares Trust II.
Key Numbers
- 2023-12-31 — Fiscal Year End (The reporting period for the 10-K.)
- 2024-02-28 — Filing Date (Date the 10-K was filed.)
- 0.95% — Expense Ratio (Stated expense ratio under various conditions.)
- May 12, 2022 — Liquidation Date (Date of liquidation for two ETFs.)
Key Players & Entities
- ProShares Trust II (company) — Filer of the 10-K report.
- 2023-12-31 (date) — Fiscal year end.
- 2024-02-28 (date) — Filing date.
- 7501 Wisconsin Ave, Suite 1000, Bethesda, MD 20814 (address) — Business and mailing address.
- ProShares Short Euro ETF (company) — Mentioned as liquidated.
- ProShares UltraShort Australian Dollar ETF (company) — Mentioned as liquidated.
FAQ
When did ProShares Trust II file this 10-K?
ProShares Trust II filed this Annual Report (10-K) with the SEC on February 28, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by ProShares Trust II (UCO).
Where can I read the original 10-K filing from ProShares Trust II?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by ProShares Trust II.
What are the key takeaways from ProShares Trust II's 10-K?
ProShares Trust II filed this 10-K on February 28, 2024. Key takeaways: The filing is for ProShares Trust II, a company incorporated in Delaware.. The fiscal year end for the company is December 31, 2023.. The company's business address is 7501 Wisconsin Ave, Suite 1000, Bethesda, MD 20814..
Is ProShares Trust II a risky investment based on this filing?
Based on this 10-K, ProShares Trust II presents a relatively low-risk profile. The filing is a standard 10-K for an ETF trust, with no immediate red flags indicating high risk. The information provided is routine financial reporting.
What should investors do after reading ProShares Trust II's 10-K?
Review the detailed notes on swap agreements and counterparty exposures to understand the specific risks and strategies employed by ProShares Trust II. The overall sentiment from this filing is neutral.
Risk Factors
- Counterparty Risk [medium — operational]: The fund continually evaluates counterparties for transactions, and these counterparties are subject to change, with new ones potentially added at any time.
- Valuation of Market Positions [medium — financial]: Market values are determined at the close of the applicable primary listing exchange, which may be later than when the Fund's net asset value is calculated.
Key Dates
- 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
- 2024-02-28: Filing Date — Official date the 10-K was submitted to the SEC.
- 2022-05-12: ETF Liquidation — Date ProShares Short Euro ETF and ProShares UltraShort Australian Dollar ETF were liquidated.
Glossary
- Total Return Swap Agreements
- Agreements where one party pays a fixed or floating rate on a notional amount, and the other pays the total return of an underlying asset. (Key financial instruments used by the fund to gain exposure to benchmark indices.)
- Variation Margin
- The daily gain or loss on a futures contract, settled between parties. (Relevant for understanding daily cash flows related to futures contracts.)
Filing Stats: 4,604 words · 18 min read · ~15 pages · Grade level 12.5 · Accepted 2024-02-28 17:18:08
Key Financial Figures
- $0 — had 145,064,214 shares of common stock, $0 par value per share, outstanding. The
- $350 — hares at an aggregate purchase price of $350 in each of the following Funds: ProShar
Filing Documents
- d55976d10k.htm (10-K) — 8270KB
- d55976dex231.htm (EX-23.1) — 2KB
- d55976dex311.htm (EX-31.1) — 11KB
- d55976dex312.htm (EX-31.2) — 11KB
- d55976dex321.htm (EX-32.1) — 4KB
- d55976dex322.htm (EX-32.2) — 4KB
- d55976dex971.htm (EX-97.1) — 17KB
- g55976g01k01.jpg (GRAPHIC) — 105KB
- g55976g01k03.jpg (GRAPHIC) — 80KB
- g55976g01k04.jpg (GRAPHIC) — 86KB
- g55976g01k05.jpg (GRAPHIC) — 103KB
- g55976g01k07.jpg (GRAPHIC) — 78KB
- g55976g01k08.jpg (GRAPHIC) — 78KB
- g55976g01k09.jpg (GRAPHIC) — 104KB
- g55976g01k10.jpg (GRAPHIC) — 97KB
- g55976g01k11.jpg (GRAPHIC) — 48KB
- 0001193125-24-050920.txt ( ) — 22197KB
- ck0001415311-20231231.xsd (EX-101.SCH) — 57KB
- ck0001415311-20231231_cal.xml (EX-101.CAL) — 29KB
- ck0001415311-20231231_def.xml (EX-101.DEF) — 381KB
- ck0001415311-20231231_lab.xml (EX-101.LAB) — 329KB
- ck0001415311-20231231_pre.xml (EX-101.PRE) — 431KB
- d55976d10k_htm.xml (XML) — 4691KB
Business
Item 1. Business . 1
Risk Factors
Item 1A. Risk Factors . 20
Unresolved Staff Comments
Item 1B. Unresolved Staff Comments . 54
Cybersecurity
Item 1C. Cybersecurity . 54
Properties
Item 2. Properties . 54
Legal Proceedings
Item 3. Legal Proceedings . 54
Mine Safety Disclosures
Item 4. Mine Safety Disclosures . 54 Part II.
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . 55
[Reserved]
Item 6. [Reserved] . 58
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations . 58
Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk . 81
Financial Statements and Supplementary Data
Item 8. Financial Statements and Supplementary Data . 94
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure . 100
Controls and Procedures
Item 9A. Controls and Procedures . 100
Other Information
Item 9B. Other Information . 101
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections . 101 Part III.
Directors, Executive Officers and Corporate Governance
Item 10. Directors, Executive Officers and Corporate Governance . 102
Executive Compensation
Item 11. Executive Compensation . 104
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . 105
Certain Relationships and Related Transactions, and Director Independence
Item 13. Certain Relationships and Related Transactions, and Director Independence . 105
Principal Accounting Fees and Services
Item 14. Principal Accounting Fees and Services . 105 Part IV.
Exhibits and Financial Statement Schedules
Item 15. Exhibits and Financial Statement Schedules . 106
Form 10-K Summary
Item 16. Form 10-K Summary . 106 Exhibit Index 106
Signatures
Signatures 107 Table of Contents Part I. Item1. Business. Summary ProShares Trust II (the "Trust") is a Delaware statutory trust formed on October 9, 2007 and is currently organized into separate series (each, a "Fund" and collectively, the "Funds"). As of December 31, 2023, the following sixteen series of the Trust have commenced investment operations: (i) ProShares VIX Short-Term Futures ETF and ProShares VIX Mid-Term Futures ETF (each, a "Matching VIX Fund" and collectively, the "Matching VIX Funds"); (ii) ProShares Short VIX Short-Term Futures ETF and ProShares Ultra VIX Short-Term Futures ETF (each, a "Geared VIX Fund" and collectively, the "Geared VIX Funds"); and (iii) ProShares UltraShort Bloomberg Crude Oil, ProShares UltraShort Bloomberg Natural Gas, ProShares UltraShort Gold, ProShares UltraShort Silver, ProShares UltraShort Euro, ProShares UltraShort Yen, ProShares Ultra Bloomberg Crude Oil, ProShares Ultra Bloomberg Natural Gas, ProShares Ultra Gold, ProShares Ultra Silver, ProShares Ultra Euro and ProShares Ultra Yen (each, a "Leveraged Fund" and collectively, the "Leveraged Funds"); Each of the Funds listed above issues common units of beneficial interest ("Shares"), which represent units of fractional undivided beneficial interest in and ownership of only that Fund. The Shares of each Fund, other than the Matching VIX Funds and the Geared VIX Funds, are listed on the NYSE Arca, Inc. ("NYSE Arca"). The Matching VIX Funds and the Geared VIX Funds are listed on the Cboe BZX Exchange ("Cboe BZX"). The Leveraged Funds and the Geared VIX Funds, are collectively referred to as the "Geared Funds". The Geared VIX Funds and the Matching VIX Funds are collectively referred to as the "VIX Funds". On March 11, 2022, ProShares Capital Management LLC announced that it planned to close and liquidate ProShares UltraShort Australian Dollar ETF (ticker symbol: CROC) and ProShares Short Euro ETF (ticker symbol: EUFX). The last day the liquidated funds acce