Toppan Merrill - ProFunds Funds VP Main Semi-Annual Report [Funds] 06-30-2021 ED [AUX] | bliteck | 24-Aug-21 00:06 | 21-1908-3.aa | Sequence: 1 CHKSUM Content: 54117 Layout: 6120 Graphics: 61486 CLEAN Semiannual Report JUNE 30, 2021 ProFunds VP Access VP High Yield Short Small-Cap Asia 30 Small-Cap Banks Small-Cap Growth Basic Materials Small-Cap Value Bear Technology Biotechnology Telecommunications Bull UltraBull Consumer Goods UltraMid-Cap Consumer Services UltraNasdaq-100 Dow 30 UltraShort Dow 30 Emerging Markets UltraShort Nasdaq-100 Europe 30 UltraSmall-Cap Falling U.S. Dollar U.S. Government Plus Financials Utilities Government Money Market Health Care Industrials International Internet Japan Large-Cap Growth Large-Cap Value Mid-Cap Mid-Cap Growth Mid-Cap Value Nasdaq-100 Oil & Gas Pharmaceuticals Precious Metals Real Estate Rising Rates Opportunity Semiconductor Short Dow 30 Short Emerging Markets Short International Short Mid-Cap Short Nasdaq-100 JOB: 21-1908-3 CYCLE#;BL#: 7; 0 TRIM: 8.25" x 10.75" AS: New York: 212-620-5600 COLORS: ~note-color 2, Black GRAPHICS: ProFunds_CVR_logo_k.eps, ProFunds_FC_art_k.eps V1.5 Toppan Merrill - ProFunds Funds VP Main Semi-Annual Report [Funds] 06-30-2021 ED [AUX] | bliteck | 24-Aug-21 00:06 | 21-1908-3.ac | Sequence: 1 CHKSUM Content: 53432 Layout: 22726 Graphics: 0 CLEAN Table of Contents 1 Message from the Chairman 188 ProFund VP Short Emerging Markets 3 Financial Statements and 192 ProFund VP Short International Financial Highlights 196 ProFund VP Short Mid-Cap 4 ProFund Access VP High Yield 200 ProFund VP Short Nasdaq-100 9 ProFund VP Asia 30 204 ProFund VP Short Small-Cap 14 ProFund VP Banks 208 ProFund VP Small-Cap 19 ProFund VP Basic Materials 237 ProFund VP Small-Cap Growth 24 ProFund VP Bear 246 ProFund VP Small-Cap Value 28 ProFund VP Biotechnology 257 ProFund VP Technology 33 ProFund VP Bull 264 ProFund VP Telecommunications 44 ProFund VP Consumer Goods 269 ProFund VP UltraBull 50 ProFund VP Consumer Services 280 ProFund VP UltraMid-Cap 56 ProFund VP Dow 30 290 ProFund VP UltraNasdaq-100 60 ProFund VP Emerging Markets 296 ProFund VP UltraShort Dow 30 66 ProFund VP Europe 30 300 ProFund VP UltraShort Nasdaq-100 71 ProFund VP Falling U.S. Dollar 304 ProFund VP UltraSmall-Cap 76 ProFund VP Financials 334 ProFund VP U.S. Government Plus 83 ProFund VP Government Money Market 338 ProFund VP Utilities 87 ProFund VP Health Care 343 Notes to Financial Statements 93 ProFund VP Industrials 373 Board Approval of Liquidity Risk 100 ProFund VP International Management Program 104 ProFund VP Internet 375 Expense Examples 109 ProFund VP Japan 113 ProFund VP Large-Cap Growth 120 ProFund VP Large-Cap Value 130 ProFund VP Mid-Cap 134 ProFund VP Mid-Cap Growth 141 ProFund VP Mid-Cap Value 149 ProFund VP Nasdaq-100 155 ProFund VP Oil & Gas 160 ProFund VP Pharmaceuticals 165 ProFund VP Precious Metals 169 ProFund VP Real Estate 175 ProFund VP Rising Rates Opportunity 179 ProFund VP Semiconductor 184 ProFund VP Short Dow 30 JOB: 21-1908-3 CYCLE#;BL#: 7; 0 TRIM: 8.25" x 10.75" AS: New York: 212-620-5600 COLORS: Black, ~note-color 2 GRAPHICS: none V1.5 Toppan Merrill - ProFunds Funds VP Main Semi-Annual Report [Funds] 06-30-2021 ED [AUX] | bliteck | 24-Aug-21 00:06 | 21-1908-3.ba | Sequence: 1 CHKSUM Content: 4620 Layout: 15890 Graphics: 2064 CLEAN Message from the Chairman Dear Shareholder: they remain committed to their accommodative policies of monthly bond purchases until the economy fully As the economy and local communities continue to recover recovers, even though other countries have begun to taper from the impacts of COVID-19, we would like to reaffirm their bond purchases. our commitment to providing our clients with the products and services that help them meet their investment Most major U.S. indexes posted robust returns over the six- goals and objectives. I am pleased to present the month period. Large caps were strong, with the S&P 500 semiannual report to shareholders of ProFunds VP Trust for rising 15.2%, the DJIA® (Dow® ) climbing 13.8% and the the six months ended June 30, 2021. tech-heavy Nasdaq-100 Index gaining 13.3%. Mid-cap and small-cap stocks also did well, with the S&P MidCap 400® U.S. Stock Market Recorded returning 17.6% and the Russell 2000® Index up 17.5%. Impressive Gains All 10 Dow Jones U.S. Industry Indexes posted positive Equities climbed during the period as a result of strong returns. The best-performing sectors were oil and gas corporate earnings, Congress’s $1.9 trillion coronavirus (45.6%), financials (22.1%) and technology (17.8%). stimulus package, the lifting of restrictions on many Most International Equities Also businesses, and significant progress on administering Posted Positive Returns vaccines. Value equities outperformed their growth counterparts by ten percentage points (0.10%) early in the Global economies began to return to their pre-pandemic period, their best performance in 20 years. The peaks during the reporting period. The MSCI EAFE Index, Nasdaq-100 lagged, gaining just 0.5% during the first which tracks developed markets outside North America, quarter as a sharp rise in interest rates pressured growth rose 8.8%, and the STOXX Europe 50 Index appreciated stocks. 11.5%. Europe benefited from the end of lockdowns, increased bond buying by the European Central Bank By June, the S&P 500 had reached a new all-time high with (ECB) and an anticipated large European stimulus program. positive contributions from many industries. However, Emerging markets, as measured by the BNY Mellon small-cap equities outperformed large-cap stocks. A 3.4% Emerging Markets 50 ADR Index, rose 3.7%, while the rise in consumer inflation (the highest in 14 years) in the BNY China Select ADR and Japan’s Nikkei 225 Index were second quarter as compared to the second quarter 2020 among the few foreign markets that declined, falling 8.5% worried many investors. Nevertheless, the Fed states that and 1.9%, respectively. 1 JOB: 21-1908-3 CYCLE#;BL#: 7; 0 TRIM: 8.25" x 10.75" AS: New York: 212-620-5600 COLORS: ~note-color 2, Black GRAPHICS: michael_sapir_2-16_photo.eps V1.5 Toppan Merrill - ProFunds Funds VP Main Semi-Annual Report [Funds] 06-30-2021 ED [AUX] | bliteck | 24-Aug-21 00:06 | 21-1908-3.ba | Sequence: 2 CHKSUM Content: 56146 Layout: 53197 Graphics: 52749 CLEAN High Yield Bonds Were the Top U.S. Equity Investors Benefited from Performers in Fixed Income Market Performance, Especially in Small Caps Yields rose and bond prices fell during the reporting period, especially for corporates and Treasurys, amid The robust economic recovery and strong U.S. equity concerns about rising inflation and anticipation of more market performance during the reporting period offered robust growth, but longer-term yields retreated slightly at investors opportunities across a number of ProFunds VP quarter end. However, the demand for high-yield bonds funds that track major U.S. equity indexes. Russell 2000® boosted their prices. Long-term Treasury yields ticked Index investors, in particular, were rewarded by the strong slightly lower at the end of the second quarter of 2021. performance in small caps during the period. Funds tracking the energy sector also posted strong returns. We Over the six months, the Bloomberg Barclays U.S. are pleased that our insurance partners and their clients Aggregate Bond Index® fell 1.6%. The Ryan Labs Treasury were able to take advantage of these trends during the 30-Year and 10-Year Indexes fell 9.1% and 4.1%, period. respectively. High-yield bonds rose 3.0%, based on the Markit iBoxx $ Liquid High Yield Index. The U.S. dollar rose Also during the period, the Access VP High Yield Fund was 2.0%, based on the Bloomberg Dollar Spot Index. In reorganized from the former Access One Trust into addition, oil prices rose 45% in the first six months of ProFunds. We are confident this change should benefit 2021 and approached $80 a barrel for the first time since investors by increasing the efficiency with which we can early 2019. manage the fund. The name of the fund changed from the Access VP High Yield Fund to the ProFund Access VP High The Economy Continued to Emerge Yield. The fund’s name change was seamless for investors, from the Pandemic requiring no action on their part, and neither the fund’s The U.S. economy grew at a robust pace during the objective nor its investments changed as a result. reporting period. First-quarter real GDP grew by 6.4% We thank you for the trust and confidence you have placed annualized. Unemployment declined during the period, in us by choosing ProFunds VP and appreciate the according to the U.S. Bureau of Labor Statistics, closing opportunity to continue serving your investing needs. June at 5.9% as the economy added 850,000 new jobs. Sincerely, Michael Sapir Chairman of the Board of Trustees 2 JOB: 21-1908-3 CYCLE#;BL#: 7; 0 TRIM: 8.25" x 10.75" AS: New York: 212-620-5600 COLORS: ~note-color 2, Black GRAPHICS: Michael_Sapir_sig.eps V1.5 Toppan Merrill - ProFunds Funds VP Main Semi-Annual Report [Funds] 06-30-2021 ED [AUX] | bliteck | 24-Aug-21 00:06 | 21-1908-3.ea | Sequence: 1 CHKSUM Content: 13744 Layout: 34553 Graphics: 0 CLEAN Financial Statements and Financial Highlights JOB: 21-1908-3 CYCLE#;BL#: 7; 0 TRIM: 8.25" x 10.75" AS: New York: 212-620-5600 COLORS: Black, ~note-color 2 GRAPHICS: none V1.5 Toppan Merrill - ProFunds Funds VP Main Semi-Annual Report [Funds] 06-30-2021 ED [AUX] | bliteck | 24-Aug-21 00:06 | 21-1908-3.ea | Sequence: 2 CHKSUM Content: 13051 Layout: 28183 Graphics: 0 CLEAN 4 :: ProFund Access VP High Yield :: Financial Statements Investment Objective: The ProFund Access VP High Yield seeks to provide investment results that correspond generally to the total return of the high yield market, consistent with maintaining reasonable liquidity.