Fund Description: ProShares High Yield-Interest Rate Hedged 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 High Yield-Interest Rate Hedged ETF seeks investment results, before fees and expenses, that track the performance of the Citi High Yield (Treasury Rate-Hedged) Index. INDEX DESCRIPTION: The Citi High Yield (Treasury Rate-Hedged) Index is comprised of (a) long positions in USD-denominated high yield corporate bonds (high yield bonds) and (b) short positions in U.S. Treasury notes or bonds (Treasury Securities) of, in aggregate, approximate equivalent duration. In entering these positions, the index seeks to achieve an overall effective duration of zero. By taking such short positions, the Index seeks to mitigate the potential negative impact of rising Treasury interest rates on the performance of high yield bonds (conversely limiting the potential positive impact of falling interest rates). The short positions are not intended to mitigate other factors influencing the price of high yield bonds, such as credit risk, which may have a greater impact than rising or falling interest rates. The long high yield corporate bond positions included in the index are designed to represent the more liquid universe of high yield bonds for sale within the United States. Currently, the bonds eligible for inclusion in the index high yield bonds that are issued by companies domiciled in the U.S. and Canada, and that are: fixed rate (including callable bonds); have a maximum rating of Ba1/BB+ by both Moody's Investors Service, Inc. and S&P Financial Services, LLC; and are subject to minimum issue outstanding, minimum time to maturity and maximum time from issuance criteria. Pay-in-kind bonds (which allow issuers the option of paying bondholders interest in additional securities or cash) are excluded. No more than two issues from each issuer are allowed, and no more than 2% of the index is allocated to any single issuer. The Index is reconstituted and rebalanced (including a reset of the duration-equivalent short position in Treasury Securities) on a monthly basis. FUND STRATEGY: Under normal circumstances, the Fund will invest at least 80% of its total assets in high-yield bonds included in the Index. The securities and derivatives that the Fund will principally invest in are; cash balances arising from the use of derivatives will typically be held in money market instruments; ETFs; derivatives; swap agreements; money market instruments; U.S. Treasury Bills; and repurchase agreements. A passive approach to investing is used that is designed to track the performance of the Index. The Fund attempts to track the performance of the Index by investing all, or substantially all, of its assets in the types of 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 or financial instruments not contained in the Index, with the intent of obtaining exposure with aggregate characteristics similar to those of the Index, including the general credit profile of the Index. The Fund seeks to remain fully invested at all times in securities and/or financial instruments that, in combination, provide exposure to the Index without regard to market conditions, trends, direction or the financial condition of a particular high yield bond issuer. FUND MANAGEMENT: ProShare Advisors serves as the investment adviser to the Fund.