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Volatility in Perspective

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Volatility, one measure of risk, should be a consideration when evaluating any investment. Understanding and comparing volatility over time and across indexes or benchmarks offers a historical context that can be used as a factor when weighing the risks of one investment versus another.

The chart of Index Volatility Measures provided below displays volatility for 50 equity, fixed-income, currency and commodity indexes or benchmarks over a 10-year period from 2001-2010. We measured volatility using daily benchmark returns over rolling 90-calendar-day periods. Additional information about our methodology in constructing the chart, and about the importance of understanding volatility and its effects on geared (leveraged and inverse) funds, is also provided.

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Investing involves risk, including the possible loss of principal. ProShares are non-diversified and entail certain risks, including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Short ProShares should lose money when their benchmarks or indexes rise. Please see their summary and full prospectuses for a more complete description of risks.

Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. A separate ProShares Trust II prospectus is available for Volatility, Currency and Commodity funds. You may obtain them from your financial adviser or broker/dealer representative.

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