Fund Description: ProShares UltraPro Short 20+ Year Treasury 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 UltraPro Short 20+ Year Treasury ETF seeks daily investment results, before fees and expenses, that correspond to three times the inverse (-3x) of the daily performance of the Barclays Capital U.S. 20+ Year Treasury Index. ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their holdings consistent with their strategies, as frequently as daily. INDEX DESCRIPTION: The Barclays Capital U.S. 20+ Year Treasury Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity greater than 20 years, are nonconvertible, are denominated in U.S. dollars, are rated investment grade (at least Baa3 by Moody's Investors Service or BBB- by S&P), are fixed rate, and have more than $250 million par outstanding. The Index is weighted by the relative market value of all securities meeting the index criteria. Excluded from the index are certain special issues, such as flower bonds, targeted investor notes (TINs), U.S. Treasury inflation protected securities (TIPS), state and local government series bonds (SLGs), and coupon issues that have been stripped from assets already included. FUND STRATEGY: Using a mathmatical approach, ProShare Advisors determines the type, quantity and mix of investment positions that the Fund should hold on a daily basis to approximate the performance of three times the inverse (-3x) of the Index. The Fund may hold or gain exposure to only a representative sample of the securities in the Index, which are intended to have aggregate characteristics similar to those of the Index. The Fund seeks to remain fully invested at all times in securities and/or derivatives that, in combination, provide inverse leveraged exposure to the 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 Index’s movements during the day will affect whether the Fund’s portfolio needs to be re-positioned. FUND MANAGEMENT: The ProShares Trust Board is responsible for the general supervision and for the day-to-day operations of the Fund. ProShare Advisors, serves as the investment advisor to the Fund and provides investment advice, management services and oversees the investment and reinvestment of the assets in the Funds.