Rocket, I'll give you the point that the prospectus says, "equities and/or derivitives", but that does not mean that the entire fund is purely derivitives and no equity. BTW, when you were doing a little more research, did you happen to find anything related to your original assertion that this was owned by Citi?
Here's some additional risk-related info I found in the prospectus. Principal Investment Strategies for ProShares Ultra Financials: "Committing at least 80% of its net assets, including any borrowings for investment purposes, under normal circumstances, to equity securities contained in the Index and/or financial instruments that, in combination, should have similar economic characteristics."
From the "Special Risks of Exchange-Traded Funds" section on page 16: A Precautionary Note to Investment Companies For purposes of the 1940 Act, each Fund is a registered investment company....
Page 12, "Counterparty Risk (All Funds) A Fund will be subject to credit risk (described below) with respect to the amount it expects to receive from counterparties to financial instruments....A Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding and a Fund may obtain only limited recovery or may obtain no recovery in such circumstances."
Yes I did mention in my previous post some are ETFs, this one just isn't.
As to CITI, I have done more research and you are correct. They are not owned by CITI, they are privately own. Which makes them riskier yet, imo. No way to monitor health. CITI is their counter party, and transfer agent.