ProShares Ultra SmallCap600

ProShares Ultra SmallCap600 (SAA) seeks twice the daily return of the S&P SmallCap 600 Index of 600 small US companies, using stocks and swap contracts. It is built for traders seeking magnified short-term exposure to small caps: its leverage resets daily, so results over longer periods can differ sharply from double the index. It charges 0.95% a year, and losses can be severe: it fell 87.4% from its 2007 peak to its 2009 low.

• Over the year to Oct 27, 2026, SAA returned +25.8%, 1st of 6 among similar funds.
• Its 5-year annualized return was +2.4% and its 10-year +11.0%.
• In the 2020 COVID crash it fell 68.9% and regained its old high 9.5 months after the low.
• Its worst full calendar year was 2008 (-62.2%); its best was 2013 (+94.1%).
• The deepest fall in its price history was 87.4% (Jun 4, 2007 to Mar 9, 2009), recovered by Jul 9, 2013.

As of Aug 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (0.63% of net assets), with its exposure coming from 4 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Aug 31, 2026, investors withdrew a net $330K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +14.32%, -4.35%, -1.76%.

SAA's benchmark is the S&P SmallCap 600 Index: 600 small US-listed, US-based companies weighted by market capitalization (share price times shares outstanding), so bigger firms count for more. As of May 31, 2026, members' market values ranged from $200.2 million to $14.2 billion. S&P Dow Jones Indices reviews the lineup each September and adjusts weights in March, June and December.

ProShare Advisors uses a mathematical approach to choose positions that should deliver twice the index's daily return. As of August 31, 2026, about 75% of assets were in index stocks, led by Corcept Therapeutics (0.45%), Glaukos (0.44%) and Paycom Software (0.41%). Four total return swaps, contracts with major financial institutions that pay the index's return, added exposure. Cash sat in repurchase agreements, short-term loans backed by government securities. If a swap partner defaults, the fund can lose money.

The fund rebalances daily, adding exposure after the index rises and trimming it after a fall, so the 2x target applies to one day only. Over longer periods, compounding and volatility (how much the index swings day to day) pull results away from double. The prospectus estimates if the index lost 20% in a year with 50% volatility, the fund would lose about 50.2%, not 40%. An index drop near 50% within a day could erase a holder's entire investment.

• SAA charges 0.95% a year, versus an average of 0.8% for the similar funds below.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.53% 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 $1,723 over 10 years (assuming a 5% annual return).

SAA resets its 2x leverage every day, and ProShares warns that returns over periods longer than a day can differ significantly from twice the index.

SAA's history shows how deep leveraged losses can run. In the 2008 financial crisis it fell 86.9%, part of an 87.4% slide from June 2007 to March 2009 that it did not fully recover until July 2013. It lost 68.9% between February 20 and March 23, 2020, and 46.7% in the 2022 bear market, not regaining that peak until April 30, 2026. Its worst calendar year was 2008, a 62.2% loss. Taking withdrawals during slumps like these would lock in steep losses and leave less to recover.

Income is minor: distributions come quarterly, and the trailing yield was 0.73% ($0.24 per share) as of October 27, 2026. The expense ratio is 0.95% a year, and swap financing costs add further drag. Past results don't predict the future, and a sound plan looks at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (russell 2000), same direction.