ProShares UltraShort MSCI Japan

ProShares UltraShort MSCI Japan is an exchange-traded fund (ETF) designed to deliver twice the inverse (-2x) daily performance of the MSCI Japan Index. This ETF utilizes leveraged short strategies primarily through derivatives such as swaps, allowing investors to seek amplified returns when the Japanese large and mid-cap equity market declines on a daily basis. It targets sophisticated investors looking for short-term bearish exposure on Japanese equities rather than long-term holdings due to the daily reset of leverage, which can lead to compounding effects over time. The fund provides exposure to a broad range of Japanese companies spanning diversified sectors, making it a specialized instrument to hedge or speculate on downward movements of the Japanese stock market. Established in 2007 and managed by ProShares Trust, it features a net expense ratio of approximately 0.95% and distributes dividends quarterly. The fund's role in financial markets is to enable strategic portfolio risk management and tactical trading focused on Japan's equity performance through an inverse leveraged mechanism.