ProShares Ultra Energy

ProShares Ultra Energy (DIG) aims to deliver twice (2x) the daily return, before fees, of the S&P Energy Select Sector Index. That index holds the energy companies in the S&P 500, led by ExxonMobil and Chevron. The fund resets its leverage every day, so returns over months or years can drift far from 2x the index. With a 0.95% expense ratio and a 97.2% drop at its deepest, it is a short-term trading tool, not a long-term holding.

• Over the year to Oct 27, 2026, DIG returned +126.9%, 6th of 7 among similar funds.
• Its 5-year annualized return was +33.2% and its 10-year +7.3%.
• In the 2020 COVID crash it fell 83.9% and regained its old high 21.7 months after the low.
• Its worst full calendar year was 2008 (-72.8%); its best was 2022 (+125.5%).
• The deepest fall in its price history was 97.2% (May 20, 2008 to Mar 23, 2020), not yet recovered.

As of Aug 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (21.44% of net assets), with its exposure coming from 6 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Aug 31, 2026, investors withdrew a net $9.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -10.36%, +24.23%, +14.20%.

The fund seeks daily results, before fees and expenses, equal to two times (2x) the daily performance of the S&P Energy Select Sector Index. S&P Dow Jones Indices builds that index from S&P 500 companies in two industries: energy equipment and services, and oil, gas and consumable fuels. Companies are weighted by market capitalization (their total stock market value), so the largest have the most influence. The index is reviewed every September, and its weights are adjusted in March, June and December.

ProShare Advisors gets the 2x exposure by combining stocks with total return swaps. These are contracts with major financial institutions that pay the fund the index's return, minus financing costs. As of August 31, 2026, stocks made up about 54% of assets. The largest were ExxonMobil (10.8%) and Chevron (8.1%). Cash and repurchase agreements, which are short-term loans backed by government securities, made up much of the rest.

The fund rebalances every day. When the index rises, it adds exposure; when the index falls, it cuts back. Because of this daily reset, returns over longer periods compound and can differ sharply from 2x the index. In choppy markets they are usually worse. The prospectus warns that if the index nears a 50% loss within a single day, holders could lose their entire investment.

• DIG charges 0.95% a year.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.11% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $97 in the first year and $1,284 over 10 years (assuming a 5% annual return).

The fund resets 2x leverage daily, is designed around one-day results, and has suffered losses of more than 80% that took years to recover or never recovered.

DIG offers little that a long-term portfolio can rely on. In the 2008 financial crisis it fell 86.1% between May 2008 and March 2009. Its deepest drop, 97.2% from May 2008 to March 2020, has never been recovered. In the 2020 COVID crash it lost 83.9% in about five weeks and took 21.7 months to get back to its earlier high. In 2022 it gained while the broad stock market fell, but it still dropped 46% between June and July. Its worst calendar year was 2008, at -72.8%. Anyone who had to draw money out during one of those drops would have locked in losses that are very hard to make back.

Its trailing yield was 1.1% as of October 27, 2026, paid quarterly, and it costs 0.95% a year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (energy), same direction.