In a standard “swap” transaction, two parties agree to exchange the return (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. These derivatives principally include: ○ Swap Agreements - Contracts entered into primarily with major global financial institutions for a specified period ranging from a day to more than one year. The Fund invests in derivatives as a substitute for investing directly in securities in order to seek returns for a single day that are leveraged (1.5x) to the returns of the Index for that day. ![]() Derivatives - The Fund invests in derivatives, which are financial instruments whose value is derived from the value of an underlying asset or assets, such as stocks, bonds, funds (including exchange-traded funds (“ETFs”)), interest rates or indexes.Equity Securities - The Fund invests in common stock issued by public companies.The Fund expects that its cash balances maintained in connection with the use of financial instruments will typically be held in money market instruments. ![]() The Index is published under the Bloomberg ticker symbol “DJUSRE.” The Fund will invest principally in the financial instruments set forth below. The Index is a market cap weighted index that is updated in March, June, September and December. REITs are passive investment vehicles that invest primarily in income producing real estate or real estate related loans or interests. ![]() Component companies include, among others, real estate holding and development and real estate services companies and REITs. The Index is designed to track the performance of real estate investment trusts (“REITs”) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies. The Index is constructed and maintained by S&P Dow Jones Indices LLC. The Fund invests in financial instruments that ProFund Advisors believes, in combination, should produce daily returns consistent with the Fund’s investment objective.
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