Fund Description: ProShares Short High Yield 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 High Yield ETF seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Markit iBoxx $ Liquid High Yield Index. This ETF seeks a return of -100% of the return of the Index for a single day. 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 frequently as daily. INDEX DESCRIPTION: The Markit iBoxx $ Liquid High Yield Index is a modified market-value weighted index designed to provide a balanced representation of U.S. dollar-denominated high yield corporate bonds for sale within the United States by means of including the most liquid high yield corporate bonds available as determined by the index provider. Currently, the bonds eligible for inclusion in the Index include U.S. dollar-denominated, corporate bonds for sale in the United States that are issued by companies domiciled in the U.S., Bermuda, Canada, Cayman Islands, Western Europe or Japan; are rated sub-investment grade by Moody’s Investors Service, Inc., Fitch, Inc. or Standard and Poor’s Financial Services, LLC; are from issuers with at least $1 billion par outstanding; have at least $400 million of outstanding face value; and are between three and fifteen years to maturity. There is no limit to the number of issues in the Index. Index rebalances occur monthly. FUND STRATEGY: The Fund invests in derivatives that is believed should have similar daily performance characteristics as the inverse of the daily return of the Index. A mathematical approach to investing is used to determines the type, quantity and mix of investment positions that the Fund should hold to approximate the performance of its Index. The Fund may gain exposure to only a representative sample of the securities in the Index, which is intended to have aggregate characteristics similar to those of the Index. Assets of the Fund not invested in derivatives will typically be held in money market instruments. The Fund seeks to remain fully invested at all times in securities and/or derivatives that provide exposure to its Index without regard to market conditions, trends or direction. At the close of the markets each trading day, the Fund will seek to position its portfolio so that its exposure to the Index 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. FUND MANAGEMENT: The Board of Trustees is responsible for the general supervision of the Fund. The officers of the Trust are responsible for the day-to-day operations of the Fund. ProShare Advisors serves as the investment adviser to the Fund and provides investment advice and management services to the Fund and oversees the investment and reinvestment of the assets in the Fund.