Fund Description: ProShares UltraShort Silver 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 UltraShort Silver seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of silver bullion as measured by the London Silver Price. 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 frequent as daily. BENCHMARK DESCRIPTION: The BenchMark, London Silver Price, is the U.S. Dollar price of silver bullion for delivery in London. It is designed to be a price for settling contracts between members of the London bullion market. The London Silver Price is set once a day, at 12:00 GMT. Daily price quotes can be viewed at the London Bullion Market Association. Silver is priced in U.S. dollars per troy ounce. The largest industrial users of silver are the photographic, jewelry, and electronic industries and developments in these industries among other factors may influence the price of silver. Like gold, the silver market is a global marketplace consisting of both OTC transactions and exchange-traded products. The OTC market generally consists of transactions in spot, forwards, options and other derivatives, while exchange-traded transactions consist of futures and options. FUND STRATEGY: In seeking to achieve the Fund’s investment objective, the Sponsor, ProShare Capital Management LLC, uses a mathematical approach to investing. Using this approach, the Sponsor determines the type, quantity and mix of investment positions that is believed in combination should produce daily returns consistent with the Fund’s objective. The Sponsor relies upon a pre-determined model to generate orders that will result in repositioning each Fund’s investments in accordance with their daily investment objectives. It is currently contemplated that the Fund will invest principally in any one of or combinations of Financial Instruments, including swap agreements, futures contracts, options on futures contracts or forward contracts with respect to the applicable Fund’s benchmark to the extent determined appropriate by the Sponsor. Assets of the Fund not invested in Financial Instruments will be invested in cash equivalents (such as shares of money market funds, bank deposits, bank money market accounts, certain variable rate-demand notes and repurchase agreements collateralized by government securities, whether denominated in U.S. or the applicable foreign currency with respect to a Currency Fund) that will serve as collateral for the Financial Instruments. The Sponsor does not invest the assets of the Fund in Financial Instruments or other assets based on its view of the investment merit of a particular investment, nor does it conduct conventional commodity or currency research or analysis, or forecast market movement or trends, in managing the assets of the Fund. FUND MANAGEMENT: The Sponsor, ProShare Capital Management LLC, has exclusive management and control of all aspects of the business of the Fund.