Fund Description: ProShares Ultra Silver is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the ProShares Trust II, an investment management company. INVESTMENT OBJECTIVE: The ProShares Ultra Silver seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of silver bullion as measured by the U.S. Dollar fixing price for delivery in London. The Fund does not seek to achieve its stated investment objective over a period of time greater than one day because mathematical compounding prevents the Fund from achieving such results. Due to the compounding of daily returns, returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their ProShares holdings consistent with their strategies, as frequent as daily. BENCHMARK DESCRIPTION: The BenchMark, London Silver Price, is the U.S. Dollar price of silver bullion for delivery in London. It is designed to be a price for settling contracts between members of the London bullion market. The London Silver Price is set once a day, at 12:00 GMT. Daily price quotes can be viewed at the London Bullion Market Association. Silver is priced in U.S. dollars per troy ounce. The largest industrial users of silver are the photographic, jewelry, and electronic industries and developments in these industries among other factors may influence the price of silver. Like gold, the silver market is a global marketplace consisting of both OTC transactions and exchange-traded products. The OTC market generally consists of transactions in spot, forwards, options and other derivatives, while exchange-traded transactions consist of futures and options. FUND STRATEGY: In seeking to achieve the Fund's investment objective, a mathematical approach is used to investing. Using this approach, the Sponsor, ProShare Capital Management LLC, determines the type, quantity and mix of investment positions that is believed in combination should produce daily returns consistent with the Fund’s objective. The Sponsor relies upon a pre-determined model to generate orders that will result in repositioning the Fund’s investments in accordance with its daily investment objectives. It is currently contemplated that the Fund will invest principally in any one of or combinations of the Financial Instruments with respect to the applicable Fund’s benchmark to the extent determined appropriate. Assets of the Fund not invested in Financial Instruments will be invested in cash and/or U.S. Treasury Securities or other high credit quality short-term fixed-income or similar securities (such as shares of money market funds, bank deposits, bank money market accounts, certain variable rate-demand notes and repurchase agreements collateralized by government securities, whether denominated in U.S. or the applicable foreign currency with respect to a Currency Fund) that will serve as collateral for the Financial Instruments. The types of commodity interests in which the Fund invests may vary daily. The Fund does not currently intend to invest directly in any commodity or currency but may invest directly in U.S. Treasury securities. FUND MANAGEMENT: The Sponsor, ProShare Capital Management LLC, has exclusive management and control of all aspects of the business of the Fund.