ProShares Trust II Reports Mixed Q3: SVXY Up, UCO & BOIL Down

TL;DR

**SVXY is holding strong, but UCO and BOIL are getting crushed by commodity market volatility – time to re-evaluate your leveraged plays!**

AI Summary

ProShares Trust II, through its ProShares Short VIX Short-Term Futures ETF (SVXY) and ProShares Ultra Bloomberg Crude Oil (UCO) funds, reported mixed financial results for the nine months ended September 30, 2025. SVXY saw net income increase slightly to $44,128,197 in 2025 from $44,016,083 in 2024, driven by a significant net realized gain on futures contracts of $28,979,595. However, UCO experienced a net loss of $40,102,288 in 2025, a sharp decline from a net income of $41,898,724 in 2024, primarily due to a substantial change in net unrealized depreciation on swap agreements, totaling -$39,259,949. SVXY's total assets decreased from $267,336,923 in December 2024 to $246,450,469 in September 2025, while UCO's assets also fell from $526,671,853 to $363,104,732 over the same period. SVXY's net asset value per share increased to $51.02 from $50.03, whereas UCO's net asset value per share dropped significantly from $27.49 to $22.38. The ProShares Ultra Bloomberg Natural Gas (BOIL) fund, also part of the trust, reported a net loss of $51,814,232 for the nine months ended September 30, 2025, a stark contrast to its net income of $41,898,724 in the prior year, largely due to a net realized loss on futures contracts of -$163,780,916 in the three months ended September 30, 2025.

Why It Matters

This filing reveals a divergence in performance across ProShares Trust II's key ETFs, with SVXY showing resilience while UCO and BOIL face significant headwinds. For investors, this highlights the inherent volatility and specific market exposures of leveraged and inverse commodity and volatility products. The substantial unrealized depreciation in UCO's swap agreements and BOIL's futures contracts could signal ongoing challenges in crude oil and natural gas markets, impacting future returns. This competitive context underscores the importance of active management and risk assessment in these specialized ETF categories, potentially influencing broader market sentiment towards commodity-linked investment vehicles.

Risk Assessment

Risk Level: high — The risk level is high due to significant unrealized depreciation on swap agreements for UCO (-$39,259,949 for the nine months ended September 30, 2025) and substantial net realized losses on futures contracts for BOIL (-$163,780,916 for the three months ended September 30, 2025). These figures indicate considerable exposure to volatile commodity markets and the potential for rapid value erosion.

Analyst Insight

Investors should carefully review their exposure to UCO and BOIL, considering the significant losses from derivatives. For SVXY, while performance is positive, the inherent volatility of VIX futures warrants a cautious approach. Rebalance portfolios to mitigate concentration risk in these highly leveraged and inverse ETFs.

Financial Highlights

total Assets

$246,450,469

net Income

$44,128,197

cash Position

$78,661,691

Key Numbers

• $44,128,197 — SVXY Net Income (9 months ended Sep 30, 2025) (Increased from $44,016,083 in 2024)
• $28,979,595 — SVXY Net Realized Gain on Futures Contracts (9 months ended Sep 30, 2025) (Significant contributor to net income)
• -$40,102,288 — UCO Net Income (Loss) (9 months ended Sep 30, 2025) (Decline from $41,898,724 net income in 2024)
• -$39,259,949 — UCO Change in Net Unrealized Appreciation (Depreciation) on Swap Agreements (9 months ended Sep 30, 2025) (Major factor in UCO's net loss)
• $51.02 — SVXY Net Asset Value per Share (Sep 30, 2025) (Increased from $50.03 at Dec 31, 2024)
• $22.38 — UCO Net Asset Value per Share (Sep 30, 2025) (Decreased from $27.49 at Dec 31, 2024)
• -$51,814,232 — BOIL Net Income (Loss) (9 months ended Sep 30, 2025) (Significant decline from prior year's positive income)
• -$163,780,916 — BOIL Net Realized Gain (Loss) on Futures Contracts (3 months ended Sep 30, 2025) (Primary driver of BOIL's net loss)
• 164,098,328 — Shares of common stock outstanding (As of November 4, 2025)
• $308,827,473 — BOIL Short-term U.S. government and agency obligations (Sep 30, 2025) (Increased from $99,751,500 at Dec 31, 2024)

Key Players & Entities

• ProShares Trust II (company) — Registrant of the 10-Q filing
• ProShares Short VIX Short-Term Futures ETF (company) — ETF within ProShares Trust II, ticker SVXY
• ProShares Ultra Bloomberg Crude Oil (company) — ETF within ProShares Trust II, ticker UCO
• ProShares Ultra Bloomberg Natural Gas (company) — ETF within ProShares Trust II, ticker BOIL
• SEC (regulator) — Securities and Exchange Commission
• Citibank, N.A. (company) — Counterparty for UCO swap agreements
• Goldman Sachs International (company) — Counterparty for UCO swap agreements
• Morgan Stanley & Co. International PLC (company) — Counterparty for UCO swap agreements
• Societe Generale (company) — Counterparty for UCO swap agreements
• UBS AG (company) — Counterparty for UCO swap agreements

FAQ

Risk Factors

• Volatility of VIX Futures [high — market]: SVXY's performance is tied to VIX futures, which are highly volatile. The fund experienced a net realized gain of $28,979,595 on futures contracts for the nine months ended September 30, 2025, indicating active trading and potential for significant gains or losses.
• Commodity Price Fluctuations [high — market]: UCO and BOIL are exposed to significant price swings in crude oil and natural gas. UCO reported a net loss of $40,102,288 due to a -$39,259,949 change in net unrealized depreciation on swap agreements. BOIL had a net loss of $51,814,232, driven by a net realized loss of -$163,780,916 on futures contracts in Q3 2025.
• Leveraged ETF Risks [high — financial]: Leveraged ETFs like UCO and BOIL can experience amplified losses due to their structure. UCO's net asset value per share dropped from $27.49 to $22.38, and BOIL's net income turned into a significant loss, highlighting the magnified impact of market movements.
• Interest Rate Sensitivity [medium — market]: SVXY's interest income from short-term U.S. government and agency obligations decreased from $12,580,744 in the nine months ended September 30, 2024, to $8,090,223 in the same period of 2025, reflecting changes in interest rate environments.

Industry Context

The ETF industry, particularly those focused on volatility and commodities, is highly competitive and subject to rapid market shifts. Funds like SVXY, UCO, and BOIL cater to sophisticated investors seeking specific market exposures, often involving complex derivatives and leveraged strategies.

Regulatory Implications

ProShares Trust II operates within a heavily regulated financial environment. Compliance with SEC regulations and exchange rules is paramount. The use of derivatives and leveraged instruments by its ETFs necessitates robust risk management and clear disclosure to investors regarding potential losses.

What Investors Should Do

1. Review the specific drivers of losses for UCO and BOIL.
2. Assess the sustainability of SVXY's performance.
3. Evaluate the impact of interest rate changes on short-term holdings.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period for the 10-Q, showing mixed financial performance across ProShares Trust II's ETFs, with SVXY showing slight net income growth and UCO/BOIL reporting significant losses.
• 2025-11-04: Shares of common stock outstanding reported — Indicates the total number of shares available, relevant for per-share calculations and market capitalization.

Glossary

VIX Futures

Contracts that allow investors to bet on the expected volatility of the S&P 500 index over a specific period. (SVXY's investment strategy relies on these futures, making their performance directly tied to VIX futures price movements.)

Swap Agreements

Financial contracts where two parties exchange cash flows or liabilities from two different financial instruments. (UCO utilizes swap agreements, and changes in their valuation (unrealized depreciation) significantly impacted its net loss.)

Net Asset Value (NAV) per Share

The market value of a fund's assets minus its liabilities, divided by the number of outstanding shares. (A key indicator of a fund's performance and value to shareholders; SVXY's NAV per share increased, while UCO's decreased significantly.)

Realized Gain (Loss)

Profit or loss from the sale of an asset or the closing of a contract. (Significant realized gains on futures contracts boosted SVXY's income, while realized losses heavily impacted BOIL's performance.)

Unrealized Appreciation (Depreciation)

The increase or decrease in the value of an asset or liability that has not yet been sold or settled. (Unrealized depreciation on UCO's swap agreements was a major driver of its net loss.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, ProShares Trust II experienced a divergence in performance. SVXY saw a marginal increase in net income to $44,128,197 from $44,016,083 in the prior year, driven by realized gains on futures. In contrast, UCO and BOIL reported substantial net losses of $40,102,288 and $51,814,232, respectively, a sharp reversal from prior year profitability, primarily due to adverse movements in commodity prices and derivative valuations.

Key Financial Figures

• $0 — had 164,098,328 shares of common stock, $0 par value per share, outstanding. Tab

Filing Documents

• d67672d10q.htm (10-Q) — 6762KB
• d67672dex311.htm (EX-31.1) — 11KB
• d67672dex312.htm (EX-31.2) — 11KB
• d67672dex321.htm (EX-32.1) — 4KB
• d67672dex322.htm (EX-32.2) — 4KB
• 0001193125-25-272134.txt ( ) — 18209KB
• agq-20250930.xsd (EX-101.SCH) — 1185KB
• d67672d10q_htm.xml (XML) — 4599KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Item1. Financial Statements (unaudited). Item2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 1 Item3. Quantitative and Qualitative Disclosures About Market Risk. 49 Item4. Controls and Procedures. 62

OTHER INFORMATION

Part II. OTHER INFORMATION Item1. Legal Proceedings. 64 Item1A. Risk Factors. 64 Item2. Unregistered Sales of Equity Securities and Use of Proceeds. 64 Item3. Defaults Upon Senior Securities. 67 Item4. Mine Safety Disclosures. 67 Item5. Other Information. 67 Item6. Exhibits. 68 Table of Contents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Index Documents Page ProShares Short VIX Short-Term Futures ETF F-1 ProShares Ultra Bloomberg Crude Oil F-6 ProShares Ultra Bloomberg Natural Gas F-11 ProShares Ultra Euro F-16 ProShares Ultra Gold F-21 ProShares Ultra Silver F-26 ProShares Ultra VIX Short-Term Futures ETF F-32 ProShares Ultra Yen F-37 ProShares UltraShort Bloomberg Crude Oil F-42 ProShares UltraShort Bloomberg Natural Gas F-46 ProShares UltraShort Euro F-51 ProShares UltraShort Gold F-56 ProShares UltraShort Silver F-62 ProShares UltraShort Yen F-66 ProShares VIX Mid-Term Futures ETF F-71 ProShares VIX Short-Term Futures ETF F-76 ProShares Trust II F-81

Notes to Financial Statements

Notes to Financial Statements F-85 Table of Contents PROSHARES SHORT VIX SHORT-TERM FUTURES ETF September 30, 2025 (unaudited) December 31, 2024 Assets Short-term U.S. government and agency obligations (Note 3) (cost $ 89,765,603 and $ 24,931,067 , respectively) $ 89,767,081 $ 24,937,875 Cash 78,661,691 160,200,226 Segregated cash balances with brokers for futures contracts 75,461,358 80,953,814 Receivable on open futures contracts 2,056,421 806,556 Interest receivable 503,918 438,452 Total assets 246,450,469 267,336,923 Liabilities and shareholders' equity Liabilities Payable for capital shares redeemed 2,550,308 — Payable on open futures contracts 401,524 1,011,830 Brokerage commissions and futures account fees payable 6,335 6,902 Payable to Sponsor 192,781 227,958 Total liabilities 3,150,948 1,246,690 Commitments and Contingencies (Note 2) Shareholders' equity Shareholders' equity 243,299,521 266,090,233 Total liabilities and shareholders' equity $ 246,450,469 $ 267,336,923 Shares outstanding 4,768,614 5,318,614 Net asset value per share $ 51.02 $ 50.03 Market value per share (Note 2) $ 50.94 $ 50.06 See accompanying notes to financial statements. F-1 Table of Contents PROSHARES SHORT VIX SHORT-TERM FUTURES ETF SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2025 (unaudited) Principal Amount Value Short-term U.S. government and agency obligations ( 37 % of shareholders' equity) U.S. Treasury Bills ^^ : 4.329 % due 10/07/25 $ 30,000,000 $ 29,979,651 4.182 % due 10/21/25 10,000,000 9,977,500 4.140 % due 11/04/25 50,000,000 49,809,930 Total short-term U.S. government and agency obligations (cost $ 89,765,603 ) $ 89,767,081 Futures Contracts Sold Number of Contracts Notional Amount at Value Unrealized Appreciation (Depreciation)/Value VIX Futures - Cboe, expires October 2025 4,007 $

View Full Filing

View this 10-Q filing on SEC EDGAR