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ROM ProShares Ultra Technology

Category: Leveraged Equities

Inception: 2007-01-30 Issuer: Proshare Advisors LLC
Net Assets
$540.3M
Expense Ratio
N/A
# of Holdings
72
Average Daily Volume
71.2K

Fund Overview

The ProShares Ultra Technology ETF (ROM) is a leveraged ETF designed to provide 2x the daily performance of the Dow Jones U.S. Technology Index. This ETF is ideal for investors seeking amplified exposure to the technology sector, including companies involved in software, hardware, semiconductors, and IT services. ROM uses financial derivatives and debt to achieve its leveraged objective, making it suitable for short-term trading strategies rather than long-term holding due to the effects of compounding and volatility decay. The fund is rebalanced daily to maintain its target leverage ratio.
Asset Class
Equity
Industry
Broad Technology
Annual Dividend Rate
Smart Beta
No
Leveraged / Inverse
N/A / No
Dividend Quality - Yield
 - N/A
Currency Hedged
No
Portfolio Turnover
17 %
Dividend Date

Why Invest in the ROM ETF?

Potential Benefits

  • Offers 2x daily leveraged exposure to the technology sector, potentially enhancing short-term gains.
  • Provides concentrated access to leading U.S. technology companies like Apple, Microsoft, and NVIDIA.
  • Liquidity is generally high, with tight bid-ask spreads, making it suitable for active traders.
  • Can be used for tactical bets on technology sector momentum or short-term market movements.
  • No short-selling or margin requirements needed to achieve leveraged exposure.

Potential Risks

  • Leveraged ETFs like ROM are highly volatile and can experience significant losses in adverse market conditions.
  • Daily rebalancing can lead to compounding effects that may erode returns over longer holding periods.
  • Sensitive to interest rate changes, as the fund uses debt and derivatives to achieve leverage.
  • Sector concentration risk—performance is tied to the technology sector, which can be cyclical.
  • Not suitable for buy-and-hold investors due to the risk of volatility decay.

Performance

1 Week 1 Month 1 Year 3 Years 5 Years YTD 2025 2024 Since Inception
+4.56% +0.85% +79.00% +235.91% +161.50% +55.33% +36.55% +39.28% +7001.82%

Performance


Monthly Returns (%)

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2026 -0.7% -8.0% -8.9% +42.4% +42.4% -2.4% -16.6% +12.0% +1.5% - - -
2025 -2.8% -5.2% -16.8% -0.6% +19.8% +19.8% +7.0% -0.9% +15.0% +12.7% -10.3% +0.7%
2024 +4.3% +9.0% +0.7% -12.0% +13.3% +15.4% -7.6% 0.0% +4.0% -3.5% +9.4% -1.4%
2023 +21.0% -0.3% +25.2% -1.0% +17.6% +11.3% +4.4% -3.6% -13.4% -0.7% +26.4% +8.0%
2022 -16.6% -10.6% +5.4% -25.8% -5.8% -18.3% +23.8% -12.1% -23.9% +6.9% +10.7% -17.9%
2021 +0.8% +2.5% +1.5% +12.9% -1.5% +15.3% +7.8% +10.1% -13.1% +18.1% +5.9% +2.4%
2020 +7.6% -13.5% -24.8% +29.8% +14.2% +13.1% +12.7% +24.3% -12.9% -4.9% +21.4% +9.0%
2019 +17.7% +10.6% +7.7% +13.5% -18.8% +15.7% +8.7% -6.6% +3.2% +7.5% +11.1% +8.1%
2018 +14.8% -0.1% -8.2% -0.8% +14.9% -2.4% +4.1% +14.8% -1.7% -17.4% -5.1% -16.6%
2017 +8.6% +10.9% +5.2% +4.4% +8.5% -6.0% +6.9% +6.8% +0.3% +16.3% +1.3% -0.5%
< -5% -5% to -2% -2% to 0% 0% 0% to +2% +2% to +5% > +5%

Top Holdings (by weight)

Symbol Company Name Weight
MSFT MICROSOFT CORP 11.5 %
AAPL APPLE INC 11.3 %
NVDA NVIDIA CORP 10.3 %
AVGO BROADCOM INC 3.5 %
CRM SALESFORCE INC 2.7 %
CSCO CISCO SYSTEMS INC 2.4 %
IBM INTERNATIONAL BUSINESS MACHINES CORP 2.3 %
ORCL ORACLE CORP 2.3 %
ACN ACCENTURE PLC CLASS A 2.0 %
PLTR n/a 1.8 %
Top 10 holdings shown, out of 72 total holdings.

Related ETFs: ROM vs Peers

ETF Full Name Expense Ratio Net Assets Holdings Asset Class
ARKK ARK Innovation ETF 0.75 % $5B 37 Equity
FDN First Trust Dow Jones Internet Index Fund 0.51 % $6.3B 42 Equity
FTEC Fidelity MSCI Information Technology Index ETF 0.08 % $11.4B 294 Equity
IGV iShares Expanded Tech-Software Sector ETF 0.41 % $9.9B 117 Equity
QQQ Invesco QQQ Trust Series I 0.20 % $297.5B 102 Equity
SOXL Direxion Daily Semiconductor Bull 3x Shares N/A $7B 31 Equity
SOXX iShares Semiconductor ETF 0.35 % $10.8B 31 Equity
TECL Direxion Daily Technology Bull 3X Shares N/A $2.2B 70 Equity
VGT Vanguard Information Technology ETF 0.09 % $88.2B 315 Equity
XLK Technology Select Sector SPDR Fund 0.08 % $64.2B 71 Equity
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.

Investment Strategy

ROM seeks to deliver 2x the daily performance of the Dow Jones U.S. Technology Index by using swaps, futures, and other derivatives. The index is market-cap-weighted, meaning larger companies like Apple and Microsoft have a greater influence on performance. The fund does not hold individual stocks directly but instead relies on financial instruments to replicate leveraged exposure. Daily rebalancing ensures the fund maintains its 2x leverage ratio, which can lead to compounding effects over time. This makes ROM better suited for short-term trading rather than long-term investing.

Frequently Asked Questions

Is ROM a good long-term investment?

No, ROM is designed for short-term trading due to the effects of daily leverage rebalancing, which can erode returns over time.

What is the expense ratio of ROM?

ROM has an expense ratio of 0.95%, which is higher than non-leveraged tech ETFs due to its use of derivatives and leverage.

How does ROM differ from TECL?

ROM provides 2x daily leveraged exposure to tech stocks, while TECL offers 3x leverage, making it even more volatile.

Does ROM pay dividends?

ROM does not focus on dividend income; its returns are primarily driven by price appreciation and leverage.

What is the biggest risk of investing in ROM?

The biggest risk is volatility decay—daily rebalancing in a choppy market can lead to significant losses even if the underlying index is flat over time.

Industry Overview

The ProShares Ultra Technology ETF (ROM) provides leveraged exposure to the U.S. technology sector, one of the fastest-growing segments of the economy. Technology ETFs like ROM invest in companies driving innovation in software, semiconductors, cloud computing, and artificial intelligence. The sector is known for high growth potential but also comes with elevated volatility, making leveraged ETFs like ROM more suitable for experienced traders rather than passive investors. The Dow Jones U.S. Technology Index, which ROM tracks, includes industry giants such as Apple, Microsoft, and NVIDIA, offering concentrated exposure to market leaders.

Alternative Comparison

Compared to non-leveraged tech ETFs like XLK or VGT, ROM offers amplified returns but with significantly higher risk. Another leveraged alternative, TECL, provides 3x exposure to the same sector, making it even more volatile than ROM. While XLK and VGT are better for long-term investors, ROM is designed for traders looking to capitalize on short-term tech sector movements. Unlike some leveraged ETFs that use synthetic replication, ROM primarily relies on swaps, which can introduce counterparty risk.

Issuer Overview

ProShares is a leading provider of leveraged and inverse ETFs, known for products that cater to tactical traders and sophisticated investors. The firm specializes in ETFs that use derivatives and leverage to amplify returns or hedge against market downturns. ProShares has a strong track record in managing leveraged and thematic ETFs, though their products are generally designed for short-term holding periods due to compounding effects.

Conclusion

The ProShares Ultra Technology ETF (ROM) is a high-risk, high-reward instrument designed for traders seeking leveraged exposure to the U.S. technology sector. Its 2x daily leverage makes it unsuitable for buy-and-hold strategies but potentially useful for short-term momentum plays. Investors should carefully consider the risks of volatility decay and sector concentration before trading ROM.

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