EFU -2x ProShares Trust UltraShort MSCI EAFE

EFU

ETF -2x BEAR standard
ProShares Trust UltraShort MSCI EAFE
Issuer: ProShares · Tracks: MSCI EAFE (EFA) · Listed: 2007-10-23
Implied AUM
$1.3M
Last Close
$7.47
20260720
30d Avg Vol
7,870
Options
Realized return vs theoretical -2x MSCI EAFE
Pair counterpart found: EFO (+2x bull, ProShares Ultra MSCI EAFE)
Shorting both legs of a daily-reset bull/bear pair captures combined decay drift over time. Theoretical "free money" — actual edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow products.
Other leveraged products tracking MSCI EAFE
Symbol Factor Direction Issuer Name Implied AUM 30d Vol Options
EFO +2x BULL ProShares ProShares Ultra MSCI EAFE $28.0M 4,914

How EFU works

EFU targets -2x the daily return of MSCI EAFE — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.

Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a -2x product on an underlying with 25% annualized vol, expected annual drag is around 6.2%. Add expense ratio and the realized number is typically worse.

  • Short-term tactical: daily and intraday holds are where these products were designed to live.
  • Premium selling: options on EFU carry very rich IV — see the quote page for IV rank and straddle pricing.
  • Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.