At a glance
SKYU charges 0.95% a year. It has $6.7M in assets; it paid 0.41% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +28.6% with distributions reinvested (S&P 500: +11.5%); over three years it returned +57.5% a year. At its worst it fell 74.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 37 months after the low. Its ten largest positions make up 22.0% of the fund, out of 68 in all.
The short version
ProShares Ultra Nasdaq Cloud Computing ETF (SKYU) uses stocks and swaps to seek twice the daily return of the ISE CTA Cloud Computing Index; top stock holdings include Nutanix, Arista Networks and Microsoft. It may suit traders seeking amplified bets on cloud stocks, but its daily leverage reset makes it a poor fit for long holding periods. It lost about 76% in 2022 and charges 0.95% a year after a large fee waiver.
Price history
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SKYU +28.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SKYU official prospectus, to Dec 31, 2025 | — | +3.28% | — | -1.54% | — | — |
| SKYU price data to Oct 27, 2026 | +53.1% | +28.6% | +57.5% | +1.6% | — | +4.1% |
- Over the year to Oct 27, 2026, SKYU returned +28.6%.
- Its 5-year annualized return was +1.6%.
- Its worst full calendar year was 2022 (-76.0%); its best was 2023 (+105.8%).
- The deepest fall in its price history was 83% (Nov 9, 2021 to Jan 5, 2023), recovered by Oct 9, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +53.1% | — |
| 2025 | +2.8% | — |
| 2024 | +65.8% | +3.28% |
| 2023 | +105.8% | +65.40% |
| 2022 | -76.0% | +104.87% |
| 2021 | — | -75.74% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 74% over that stretch · deepest drop along the way 74%, back to its old high 36.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.1100 | |
| 2025 | $0.2100 | +200.0% |
| 2024 | $0.0700 |
What's inside
As of Aug 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (0.33% of net assets), with its exposure coming from 4 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| Nutanix, Inc. | 2.67% | |
| Repurchase Agreement RA | 2.61% | |
| Arista Networks, Inc. | 2.48% | |
| Everpure, Inc. | 2.36% | |
| MongoDB, Inc. | 2.28% | |
| Microsoft Corp. | 2.28% | |
| Amazon.com, Inc. | 1.94% | |
| Atlassian Corp. | 1.83% | |
| Alphabet, Inc. | 1.80% | |
| Repurchase Agreement RA | 1.73% | |
| Cloudflare, Inc. | 1.70% | |
| International Business Machines Corp. | 1.58% | |
| Gitlab, Inc. | 1.52% | |
| Workiva, Inc. | 1.48% | |
| DigitalOcean Holdings, Inc. | 1.44% |
By country
United States 65.66%Canada 1.61%Israel 1.06%Germany 0.82%Netherlands 0.51%By asset type
Stocks 63.37%RA 6.29%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $1.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -14.75%, +11.77%, +31.94%.
How it works
SKYU's benchmark is the ISE CTA Cloud Computing Index, built by Nasdaq Inc. The Consumer Technology Association identifies the companies. They must rent out computing infrastructure on demand, provide platforms for building software online, or deliver software over the internet. Infrastructure earns 3 points, platforms 2 and software 1, and a company can score in more than one. Each company's weight is its share of the total points, capped at 4.5%. The index is reviewed every March, June, September and December.
To get twice the index's daily move, ProShare Advisors pairs stocks with total return swaps. These are contracts with major financial institutions in which the two sides exchange payments based on changes in value. As of August 31, 2026, stocks were about 63% of net assets, alongside four swaps. Cash is typically held in Treasury bills, repurchase agreements (short-term loans backed by securities) or a ProShares money market ETF.
The fund rebalances daily. It adds exposure after the index rises and cuts it after a fall. That keeps each day near 2x. Over longer periods, though, compounding can push results far from double the index, usually for the worse in choppy markets. The prospectus estimates that if the index fell 20% in a year with 50% volatility (a measure of swings), the fund would lose about 50%, not 40%. An index drop near 50% in one day could wipe out the investment.
What it really costs
- SKYU charges 0.95% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 4.91% 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 $5,377 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SKYU | $97 | $1,306 | $2,494 | $5,377 |
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 2× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
SKYU resets its 2x leverage every day, so results over longer periods can differ sharply from twice the index, and it has fallen as much as 83%.
SKYU offers a magnified, short-term bet on cloud stocks. It launched in January 2021, so it has no record in the 2008 or 2020 crashes. Its worst calendar year was 2022, down about 76%. In that year's market slump it fell 74% and didn't recover until October 27, 2025. Its deepest drop was about 83%, from November 9, 2021 to January 5, 2023. It didn't recover until October 9, 2026, about 45 months after the low. Anyone cashing out or drawing income in that stretch would have locked in heavy losses. Income is slim: the yield was 0.41% as of October 27, 2026, paid quarterly. The expense ratio is 0.95% after a fee waiver. Yet the SEC's standard $10,000 example puts costs at $1,306 over three years and $5,377 over ten.
Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders seeking twice the daily move of the ISE CTA Cloud Computing Index who can monitor and adjust positions every day.
- Investors who can stomach extreme swings: 62% one-year volatility as of October 27, 2026, and an 83% drop from 2021 to 2023.
- Those wanting short, tactical exposure to cloud names like Nutanix, MongoDB and Cloudflare, who understand swaps and daily compounding.
Look elsewhere if
- Long-term holders: SKYU gained about 8% in total over the five years through October 27, 2026, despite a 291% gain in the last three.
- Retirees needing income or stability: the yield was 0.41% as of October 27, 2026, and the fund lost about 76% in 2022.
- Those wanting a low-cost, large fund: the 0.95% expense ratio relies on a 4.91-point fee waiver, and net assets were $6.7 million on August 31, 2026.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is SKYU a good long-term investment?
SKYU isn't built for long holding periods. It seeks twice the daily return of the ISE CTA Cloud Computing Index and resets every day, so results over months or years can stray far from 2x. The prospectus reports a five-year average annual return of -1.54% as of December 31, 2025. Based on market price, it gained about 8% in total over the five years through October 27, 2026, despite a 291% gain over the final three of those years.
What stocks are in SKYU?
SKYU holds cloud computing stocks plus swaps that supply its extra exposure. As of August 31, 2026, stocks made up about 63% of net assets. The largest were Nutanix (2.7%), Arista Networks (2.5%), Everpure (2.4%), MongoDB (2.3%) and Microsoft (2.3%). Amazon, Atlassian, Alphabet and Cloudflare were also near the top. The fund also held four total return swaps and about 6% in repurchase agreements, a type of short-term loan backed by securities. Most of the stock exposure was in US companies.
Does SKYU pay dividends?
Yes, but very little. SKYU pays distributions quarterly. Its trailing 12-month yield (the past year's payouts divided by the share price) was 0.41% as of October 27, 2026, or about $0.23 per share. That income is tiny next to the fund's price swings: it lost about 76% in 2022 and more than doubled in 2023. Investors seeking steady income will find little of it here.
What is SKYU's expense ratio?
SKYU's expense ratio is 0.95% a year, according to its prospectus filed September 25, 2026. Its management fee is 0.75%. A fee waiver of 4.91 percentage points brings total costs down to 0.95%, so costs before the waiver are far higher. The SEC's standard example assumes $10,000 invested and a 5% annual return. It puts total costs at $97 after one year, $1,306 after three and $5,377 after ten. Financing costs on the fund's swaps also reduce returns.
Can SKYU go to zero?
Yes, it is possible. The prospectus warns that holders could lose their entire investment if the ISE CTA Cloud Computing Index approaches a 50% loss at any point in a day, because the fund's 2x leverage doubles the drop. Losses can also build over time: SKYU fell about 83% from its November 9, 2021 peak to its January 5, 2023 low. Because it uses swaps, it could also lose money if a counterparty (the institution on the other side) fails to pay.