Fund Description: ProShares UltraShort Gold ETF 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: ProShares UltraShort Gold ETF seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of gold 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. INDEX/BENCHMARK DESCRIPTION: The London Gold Price Fixing is the procedure by which the price of Gold is set on the London market by five members of the London Gold Pool. It is designed to fix a price for settling contracts between members of the London bullion market, but informally the Gold Fixing provides a recognized rate that is used as a benchmark for pricing the majority of gold products and derivatives throughout the world's markets. Gold is priced in US dollars per ounce. The London Bullion Market Association’s (LMBA) Gold Pool sets or fixes the price of Gold twice a day, at 10:30 GMT and 15:00 GMT (10:00 a.m. ET). The ProShares Gold ETF will be benchmarked to the 15:00 GMT, or the London Gold PM price. Daily price quotes can be viewed at London Bullion Market Association. 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 each Fund invests may vary daily . The Funds do 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.