Fund Description: ProShares Merger 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 Merger ETF seeks investment results, before fees and expenses, that track the performance of the S&P Merger Arbitrage Index. INDEX DESCRIPTION: The S&P Merger Arbitrage Index, created by Standard & Poor’s, provides exposure to up to 40 publicly announced Deals within developed market countries through a combination of long and, in certain cases, short security positions. When Deals enter the Index, the weight in long positions of Targets is initiated at three percent (3%) and the initial weight in short positions of Acquirers ranges between zero and three percent (0% and 3%), depending on terms of the Deal. The sum of initial net exposure for the Fund (i.e., the difference between: (a) the Fund’s total long exposure; and (b) the Fund’s total short exposure) is limited to between zero and one hundred percent (0% and 100%), with both the long and short positions having a maximum initial exposure each of 120%. The Index also includes a Treasury bill component which constitutes the remainder of the Index when net exposure from included Deals is less than 100%. Certain Deals are screened out based on liquidity, size, and Spread between the Deal price and the Target’s stock price. Additions and deletions occur on a rolling basis. Returns are expected to be uncorrelated to equity markets over time. The Index is denominated in local currencies, and the Fund will generally seek to hedge against the impact of currency movements. FUND STRATEGY: The Fund is designed to track the performance of the Index and provide exposure to a global merger arbitrage strategy. While there are no assurances of doing so, by attempting to track the Index, the Fund seeks to produce consistent, positive returns in virtually all market environments. A global merger arbitrage strategy seeks to capture the spread between the price at which the stock of a company (each such company, a Target) trades after a proposed acquisition of such Target is announced and the value (cash plus stock) that the acquiring company (the Acquirer) has proposed to pay for the stock of the Target (a Spread). Such a Spread typically exists due to the uncertainty that the announced merger, acquisition or other corporate reorganization (each, a Deal) will close, and if it closes, that such Deal will be at the initially proposed economic terms. To obtain exposure to the Index, the Fund takes long positions in shares of the Target. The Fund also takes short positions in shares of the Acquirer when the Deal involves an exchange of the Acquirer’s stock. The short positions are intended to reduce the effect that declines in the value of the Acquirer’s stock could have on the Spread. Under normal circumstances, the Fund will invest at least 80% of its total assets in component securities (i.e., securities of the Index and comparable securities that have economic characteristics that are substantially identical to the economic characteristics of the securities of the Index). For a more detailed explanation of the Fund's strategies, click on the link to the IPO Prospectus that is provided. FUND MANAGEMENT: ProShare Advisors LLC serves as advisor to the Fund.