Fund Description: ProShares Short VIX Short-Term Futures 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 Short VIX Short-Term Futures ETF seeks to provide investment results, before fees and expenses, that correspond to the inverse (-1x) of the performance of the S&P 500 VIX Short-Term Futures Index. The Fund is different and much riskier than most exchange-traded fund and is designed to be utilized only by knowledgeable investors who understand the potential consequences due to the compounding of daily returns. ProShares 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 S&P 500 VIX Short-Term Futures Index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for one month in the future. The Index maintains an average weighted settlement date of one month by rolling a portion of the position in the first month VIX futures contract into the second month VIX futures contract on a daily basis. The VIX is a commonly followed measure of the expected volatility of the S&P 500 over the next 30 days. However, since VIX is not directly investable, exposure to equity volatility is often obtained though VIX futures. The price of a VIX futures contract reflects the market expectation for the level of VIX on the settlement date of the contract. FUND STRATEGY: In seeking to achieve the Funds’ investment objectives, the Sponsor uses a mathematical approach to investing. The Fund offer investors the opportunity to obtain leveraged or short exposure to the Index. The Fund will engage in daily rebalancing to position its portfolio so that its exposure to the Index is consistent with the Fund’s daily investment objective. The impact of the Index’s movements during the day will affect whether the Fund’s portfolio needs to be repositioned. Daily rebalancing and the compounding of each day’s return over time means that the return of the Fund for a period longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from -1x of the return of the Fund’s Index for the period. The Funds generally invests in Financial Instruments whose value is derived from the value of an underlying asset, including futures contracts and options on futures contracts, swap agreements, forward contracts and other options contracts, as a substitute for investing directly in equity market volatility in order to gain exposure to the Index. FUND MANAGEMENT: ProShare Capital Management LLC, serves as the Trust’s Sponsor and has exclusive management and control of all aspects of the business of the Fund.