SSG | Proshares Ultrashort Semiconductors

SSG ISSUER

ProShares Trust, the issuer of the SSG (Semiconductor UltraShort) ETF, strategically invests in financial instruments aligned with the Daily Target, aiming for daily returns consistent with the S&P Dow Jones Indices LLC's Semiconductor Subsector Index (DJUSSC). Leveraging inverse exposure to at least 80% of its assets in Index component securities or similar instruments, the Fund primarily utilizes derivatives, including swap agreements with major financial institutions. Additionally, it maintains cash balances in high-quality, short-term money market instruments like U.S. Treasury Bills and Repurchase Agreements. ProShare Advisors employs a mathematical model to determine the optimal investment mix for daily returns, remaining fully invested regardless of market conditions. The Fund's portfolio is rebalanced daily to align with the Index movements, ensuring consistency with the Daily Target. Detailed information on investment objectives, strategies, and associated risks can be found in the Fund's Prospectus.

SSG DIVIDEND

As an inverse leveraged ETF, ProShares Trust's SSG (Semiconductor Short) does not typically pay dividends. In fact, inverse ETFs like SSG are designed to provide returns that are negatively correlated with the performance of their underlying index on a daily basis, rather than generating income through dividends. Instead, investors in SSG may potentially benefit from capital appreciation if the semiconductor sector experiences declines, aligning with the fund's objective of providing inverse exposure to the semiconductor subsector of U.S. companies. Therefore, investors looking for dividend income may need to explore other investment options outside of SSG.

SSG TRACKING

The ProShares Trust's SSG (Semiconductor Short) ETF aims to track the inverse performance of the semiconductor subsector of U.S. companies, as measured by the Index constructed and maintained by S&P Dow Jones Indices LLC. Employing inverse leverage, SSG seeks to provide investors with daily returns that move opposite to the daily returns of its underlying index. To achieve this objective, the fund utilizes a combination of financial instruments, including derivatives like swap agreements, as well as money market instruments. ProShare Advisors employs a mathematical approach to ensure that the fund's holdings are adjusted daily to maintain inverse leveraged exposure consistent with the Index. This dynamic rebalancing strategy allows SSG to closely track the movements of its underlying index, providing investors with an opportunity to potentially profit from declines in the semiconductor sector. However, it's important for investors to note that due to the daily resetting of leverage, the ETF's long-term tracking performance may deviate from the index's performance over extended periods.

SSG CORRELATION

The ProShares Trust's SSG (Semiconductor Short) ETF aims to provide investors with inverse leveraged exposure to the semiconductor subsector of U.S. companies. As such, the correlation between SSG and its underlying index, which is constructed and maintained by S&P Dow Jones Indices LLC to measure the stock performance of U.S. semiconductor companies, is expected to be negative. This means that when the index experiences gains, SSG is likely to decline, and vice versa. The fund's inverse correlation strategy is implemented through a combination of financial instruments, including derivatives like swap agreements, which are adjusted daily to maintain consistent inverse leveraged exposure. While the aim is to achieve a strong negative correlation on a daily basis, investors should note that longer-term correlations may vary due to factors such as market volatility and the effects of compounding from leveraged investments. Therefore, investors considering SSG should carefully evaluate their investment objectives and risk tolerance.

SSG SECTOR

The ProShares Trust's SSG (Semiconductor Short) ETF targets the semiconductor subsector of U.S. companies, offering investors inverse leveraged exposure to its performance. The ETF tracks an index maintained by S&P Dow Jones Indices LLC, specifically designed to measure the stock performance of U.S. semiconductor companies. Component companies within this sector include those involved in the production and distribution of semiconductors, integrated chips, semiconductor capital equipment, and related products. Through a combination of financial instruments such as derivatives and money market instruments, the fund aims to provide daily returns inversely correlated with the performance of its underlying semiconductor index. Given the technological advancements and widespread integration of semiconductor products across various industries, the SSG ETF offers investors an opportunity to potentially profit from declines in this critical sector of the U.S. economy. However, investors should be aware of the risks associated with inverse leveraged ETFs, including potential for magnified losses during periods of market volatility or unexpected sector shifts.

SSG EXPOSURE

The ProShares Trust's SSG (Semiconductor Short) ETF seeks to provide investors with inverse leveraged exposure to the semiconductor subsector of U.S. companies. This exposure is achieved through a combination of financial instruments, including derivatives such as swap agreements, which are utilized to replicate inverse returns consistent with the daily performance of its underlying index. The ETF is designed to benefit from declines in the semiconductor sector, allowing investors to potentially profit from downturns in this specific market segment. ProShare Advisors employs a mathematical approach to determine the optimal mix of investments necessary to achieve the fund's objective of inverse leveraged exposure on a daily basis. Through dynamic rebalancing, the fund aims to maintain consistent exposure to its underlying index, ensuring that investors can capitalize on inverse returns in the semiconductor sector. However, it's essential for investors to understand the inherent risks associated with inverse leveraged ETFs, including the potential for amplified losses during periods of market volatility or unexpected sector movements.ed sector shifts.