EFU provides daily geared inverse -2x exposure to the MSCI EAFE Index by holding swaps on the iShares MSCI EAFE ETF (EFA). The fund is designed to appreciate when the index falls. However due to the daily reset feature, investors shouldn't expect the return and leverage factor to remain consistent for more than a single day, meaning this is really a tactical tool rather than something to be held long-term. That also means that trading costs matter much more here than fees. The underlying index tends to have concentrated exposures to Japan and the UK (over 40% combined), making EFU a leveraged bet against Japan and the UK at its core. In addition, it is important to note that the value of the underlying index is not calculated as of the close of the US equity markets, due the difference in trading hours between US and foreign markets. It is important to understand these differences and the risks before investing.