Frequently Asked Questions about Geared Funds

Geared (leveraged and inverse) funds, which seek to provide a multiple (e.g., 2x or -2x) of the daily returns of an index or benchmark, have become valuable tools for knowledgeable investors seeking to implement a wide variety of investment strategies. With the nation’s largest lineup of alternative ETFs1 and as the leader in geared2 funds, ProShares is committed to providing information to help investors better understand how these funds work, so they can make informed investment decisions. Below are answers to frequently asked questions about geared funds:

1 Source: FRC, as of March 31, 2012
2 Source: Lipper, based on a worldwide analysis of all known providers of funds in these categories; the analysis covered ETFs and ETNs by the number of funds and assets, as of June 30, 2012