Fund Description: ProShares Long Online/Short Stores ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the ProShares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The ProShares Long Online/Short Stores ETF seeks investment results, before fees and expenses, that track the performance of the ProShares Long Online/Short Stores Index. INDEX DESCRIPTION: The ProShares Long Online/Short Stores Index consists of long positions in the online retailers included in the ProShares Online Retail Index (the Online Index) and short positions in the bricks and mortar retailers included in the Solactive-ProShares Bricks and Mortar Retail Store Index (the Retail Store Index). The Fund and Index are designed to help investors take advantage of both sides of retail’s transformation by combining full (100%) long exposure to online retailers with a partial (50%) short position to retailers that depend on physical stores. The Online Index seeks to measure the performance of publicly traded companies that principally sell online or through other non-store sales channels (Online Retailers). The Online Index includes U.S. and non-U.S. companies. To be included in the Online Index, an online retailer’s securities must be listed on a U.S. stock exchange and must meet certain liquidity and market capitalization requirements. The Retail Store Index seeks to measure the performance of publicly traded bricks and mortar” retail companies whose retail revenue is derived principally from in-store sales. The Retail Store Index includes only U.S. companies. Companies must derive at least 75% of their retail revenues from in-store sales to be included in the Retail Store Index. In addition a company’s securities must be listed on a U.S. stock exchange and must meet certain liquidity and market capitalization requirements. The Index is rebalanced monthly to equal weight and reconstituted in June of each year. FUND STRATEGY: Under normal circumstances, the Fund will invest at least 80% of its total assets in the component securities of the Online Index. The Fund intends to obtain short exposure to the positions in the Retail Store Index by investing in derivatives. The securities and derivatives that the Fund will principally invest in are; Equity Securities, Depositary Receipts, Derivatives and Swap Agreements; Money Market Instruments including U.S. Treasury Bills and Repurchase Agreements. The Fund attempts to track the performance of the Index by investing all, or substantially all, of its assets in investments that make up the Index or in financial instruments that provide similar exposure. The Fund may invest in or gain exposure to only a representative sample of the securities in the Index or to securities not contained in the Index or in financial instruments, with the intent of obtaining exposure with aggregate characteristics similar to those of the Index. The Index was concentrated in the Information Technology and Retailing industry groups and in China which may change over time. FUND MANAGEMENT: ProShare Advisors serves serves as the investment adviser to the Fund.