A measure of the amount of deviation that a portfolio shows over time, relative to its benchmark index. Tracking error quantifies the degree to which the portfolio differs from its index or benchmark, by measuring the standard deviation between the two values. If tracking error is measured historically, it is called 'ex post' tracking error. If a model is used to predict tracking error, it is called 'ex ante' tracking error. Ex post tracking error is useful for performance reporting; ex ante is generally used by portfolio managers as an input to a portfolio risk management process.

In general, leverage refers to borrowing. In investments, leverage can refer to the use of borrowed funds to enhance the returns of an investment. In a more general sense, leverage can refer to the enhancement of returns through the use of a variety of financial instruments.

A portfolio that provides the greatest expected return for a given level of risk. An efficient portfolio is mathematically calculated and takes into account the expected return for each security and its standard deviation. An information-efficient portfolio can be understood as a portfolio that takes full advantage of the value-added information provided by a stock-ranking system in determining the portfolio's composition and weighting.

A measure of an investment’s performance relative to its benchmark. Specifically, alpha measures risk-adjusted return – the return generated by a security, relative to the return you would expect based on its beta. An investment returning more than the return that would be expected based on its volatility is said to generate positive alpha; an investment returning less than its expected return is said to generate negative alpha.

A measure of an investment’s price variability, relative to the market in which that investment trades. Over time, an investment with a beta of 1.5 will move, on average, 1.5 times the movement of its market. Betas can change over time, and they can be different for different types of price and market movement. For instance, an investment can be described as having a greater downward than upward beta if the investment moves downward more strongly in a down market than it moves upward in an up market.

In an investment portfolio, selling short is the act of selling securities not already owned, in the hope of profiting by buying them back at a lower price. Typically, short sellers borrow stocks from broker-dealers and immediately sell those borrowed shares in the open market, collecting the sale price from the buyer. In order to profit, the investor must buy the shares (to return them to the broker-dealer) on the open market at a lower price than the investor got by selling them.

A long-only portfolio is restricted by its investment charter to purchasing securities and selling securities it already owns. A long-only portfolio is prohibited from borrowing shares for the purpose of selling them (i.e., selling short).

This fund may not be suitable for all investors. Investing involves risk, including the possible loss of principal. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. This ETF may involve certain costs and risks, including aggressive investment techniques (futures contracts, options, forward contracts, swap agreements and similar instruments), correlation and market price variance risks. Short positions lose value as security prices increase. Leverage can increase market exposure and magnify investment risk. In addition, this fund is non-diversified. These risks can increase volatility and decrease performance. Please see the prospectus for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.

The index is designed to replicate an investment strategy that establishes either long or short positions in certain of the 500 largest U.S. market cap equities (the “Universe”). Short positions will approximate 30% of index portfolio value. Short sale proceeds are used to purchase 30% more in long positions using leverage. There is no guarantee index methodology will result in returns exceeding the index universe returns. It is not possible to invest directly in an index.

Carefully consider the investment objectives, risks, and charges and expenses of ProShares before investing. This and other information can be found in the prospectus. Read the prospectus carefully before investing and seek advice from your financial adviser or broker/dealer representative.

“Credit Suisse” and “Credit Suisse 130/30 Large-Cap Index^TM” are trademarks of Credit Suisse Securities (USA) LLC or one of its affiliates and have been licensed for use by ProShares. ProShares have not been passed on by Credit Suisse or its affiliates as to their legality or suitability. ProShares are not sponsored, endorsed, or promoted by Credit Suisse or its affiliates, and they make no representation regarding the advisability of investing in ProShares. CREDIT SUISSE AND ITS AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES. SEI is not affiliated with Credit Suisse.