Unlike traditional index funds that seek to match the daily performance of an index, Ultra ProFunds seek to provide daily investment results, before fees and expenses, that double (200%) the daily performance of their benchmark indexes.
So, if the S&P 500 goes up by 1% on a particular day, the value of the UltraBull ProFund should increase by 2%. On a day when the S&P 500 declines by 1%, the UltraBull ProFund should lose 2%.
If you believe an index will rise and would like to increase your potential returns, you may want to consider the Ultra ProFunds. Ultra ProFunds also allow you to use half the principal you might otherwise invest in a traditional index fund to achieve approximately the same daily investment results.
And like all ProFunds, Ultra ProFunds may be appropriate for active investors. ProFunds does not limit how often an investor may exchange among ProFunds and do not impose any transaction fee when investors buy, sell or exchange a ProFund (other than a $10 wire redemption fee under certain circumstances).
Of course, the Ultra ProFunds may not be appropriate for risk-averse investors since these funds routinely employ leveraged investment techniques that will increase their volatility, and perhaps losses, in an attempt to achieve greater returns.
All of the Ultra ProFunds invest in a combination of equity securities and financial instruments that should have similar daily price characteristics as twice (200%) their benchmark indexes. For more information on the Ultra ProFunds' investment strategies and risks, please download the prospectus.
Notes:
There is no guarantee that any ProFund will achieve its investment objective. See the prospectus for more information.
The Ultra ProFunds routinely employ leveraged investment techniques that magnify gains and losses and result in greater volatility in value. Small-Cap ProFunds carry additional risks since smaller companies generally have a higher risk of failure. The Europe 30 and UltraJapan ProFunds engage in international investing, which involves increased risk and volatility.
There are no restrictions on the size and frequency of trades and no transaction fees. The frequent exchanges our policies permit can decrease performance, increase expenses and incur tax consequences. All ProFunds permit active investment strategies can decrease performance and increase expenses. In addition, it is important to note that some ProFunds are not suitable for all investors, because of aggressive investment techniques many of the funds employ.
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