Short Treasury ProShares are the only ETFs built to go up
when bond prices go down

Two new Short ProShares now make it easy for you to help protect your fixed-income portfolio, or seek profit, if U.S. Treasury prices decline. These unique ETFs give investors short exposure to U.S. Treasurys as simply as buying a stock.

UltraShort Lehman 7-10 Year Treasury ProShares
Seeks 200% of the inverse of the daily performance of the Lehman 7-10 Year U.S. Treasury Index*

Ticker: PST

UltraShort Lehman 20+ Year Treasury ProShares
Seeks 200% of the inverse of the daily performance of the Lehman 20+ Year U.S. Treasury Index*

Ticker: TBT

          *Before fees and expenses. Each fund may benefit from interest earned on cash and investments.

How they work

Short Treasury ProShares are built to move in the opposite direction of U.S. Treasury prices. For example, if the Lehman 7-10 Year Treasury Index drops 1% in a day, UltraShort Lehman 7-10 Year Treasury ProShares (PST) should gain 2% (before fees, expenses and interest income). On the flip side, if the index gains 1% in a day, PST should lose 2% (again, before fees, expenses and interest income). Please note: performance may not correlate perfectly.

Two ways to use them

Hedge. Use Short Treasury ProShares to try to protect the value of your portfolio's U.S. government bond holdings from declines. For instance, if you own a long-term government bond fund, consider UltraShort Lehman 20+ Year Treasury ProShares (TBT), which is designed to move in the opposite direction of the Lehman 20+ Year Treasury Index. If the index falls, your hedge should help offset losses in your original bond fund. If the index rises, TBT will lose value but your original bond fund should increase in value. The net effect should be to maintain the value of your portfolio.

And, since TBT and PST provide leveraged short exposure to their respective indexes, you'll need less cash to create a hedge.

When hedging, it's important to remember that your hedge position should correlate highly with the bond investment you are trying to protect. For example, TBT may not be an appropriate hedge for a corporate bond portfolio. Pay close attention to bond durations, too. PST might be a more appropriate hedge against an intermediate-term government bond fund than the longer‐term TBT.

Seek profit. If you think intermediate-term Treasury prices will fall, buy PST to seek profit from the decline. If you think long-term Treasury prices will fall, buy TBT. For every dollar you invest, you’ll get approximately $2 in short exposure (before fees, expenses and interest income).

Remember that ProShares are designed to meet daily objectives. So with either strategy, you may need to make adjustments to your holdings to maintain a specific level of short exposure over periods longer than one day. Also keep in mind that PST and TBT should decline in value if their indexes go up.

The Advantages of Short ProShares

In a word, it's easy. ProShares can be bought and sold like stocks, which means:

  • You can trade them at any time during the trading day
  • You can track your investment throughout the day

And, because ProShares are ETFs, you can get short exposure without the hassles of margin:

  • You won’t face margin calls or increased margin requirements
  • Your downside is limited to the cost of your investment; with margin it’s unlimited
  • You may be allowed to use them in vehicles that do not permit margin accounts (e.g., IRAs)

Learn more about the entire lineup of Short ProShares

All investing involves risk, including the possible loss of principal. ProShares entail certain risks, including, in some or all cases, aggressive investment techniques, inverse correlation and market price variance risks, all of which can increase volatility and decrease performance. ProShares are not diversified investments, and narrowly focused investments typically exhibit higher volatility and may be more susceptible to single‐issuer risk than a more diversified fund. There is no guarantee that any ProShares ETF will achieve its investment objective. Please note these ETFs are designed to meet daily objectives; results over longer periods may differ.

The investment comparisons are for illustrative purposes only and not meant to be all-inclusive. When comparing stocks and ProShares, remember that management fees associated with fund investments (like ProShares) are not borne by investors in individual stocks. There may be significant differences that are not discussed here. For complete details please carefully read the funds’ prospectuses and contact a financial professional.

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. For a ProShares prospectus, please download one now and seek advice from your financial adviser or broker dealer representative. Financial professionals can call ProShares at 866‐PRO‐5125.