Fund Description: ProShares Short Real Estate ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the ProShares Trust an investment management company. INVESTMENT OBJECTIVE: ProShares Short Real Estate ETF Fund seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Dow Jones U.S. Real Estate Index. The Fund does not seek to achieve its stated investment objective over a period of time greater than one day. This means that the return of the Fund for a period longer than a single trading day will be the result of each day's returns compounded over the period, which will very likely differ from the inverse of the return of the Index for that period. Investors should actively monitor their ProShare holdings consistent with their strategies, as frequently as daily. INDEX DESCRIPTION: The Dow Jones U.S. Real Estate Index measures the performance of the real estate sector of the U.S. equity market. Component companies include those that invest directly or indirectly through development, management or ownership of shopping malls, apartment buildings and housing developments; and real estate investment trusts (REITs) that invest in apartments, office and retail properties. REITs are passive investment vehicles that invest primarily in income-producing real estate or real estate related loans or interests. The Index is published under the Bloomberg ticker symbol DJUSRE. FUND STRATEGY: The Fund invests in derivatives that is believed, should have similar daily return characteristics as the inverse of the daily return of the Index. A mathematical approach to investing is used which determines the type, quantity and mix of investment positions that the Fund should hold to approximate the performance of its benchmark. The Fund may gain exposure to only a representative samples of the securities in the Index, which is intended to have aggregate characteristics similar to those of the Index. At the close of the markets each trading day, the Fund will seek to position its portfolio so that its exposure to its benchmark is consistent with the Fund's investment objective. The impact of the Index's movements during the day will affect whether the Fund's portfolio needs to be re-positioned. Because all of the securities included in the Index are issued by companies in the real estate industry group, the Fund will be concentrated approximately 100% in the real estate industry. FUND MANAGEMENT: The ProShare Advisors serves as the investment advisor to the Fund and provides investment advice and management services to the Fund.