ProShares Short High Yield

ProShares Short High Yield is an exchange-traded fund designed to seek daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of the Markit iBoxx $ Liquid High Yield Index. This index provides a modified market-value weighted representation of U.S. dollar-denominated high yield corporate bonds available for sale in the United States, focusing on liquid junk bonds across broad maturities. The fund employs derivatives such as swaps to achieve its -1x exposure, enabling investors to profit from declines in the high yield bond market or hedge long positions in this sector. ProShares Short High Yield serves tactical purposes in fixed income strategies, particularly for those anticipating downturns in high yield debt, which typically offers elevated yields but carries default risk. With quarterly distributions and options availability, it facilitates short-term positioning against corporate credit markets without the need for direct short selling of bonds or related ETFs. Launched in 2011, ProShares Short High Yield remains a specialized tool in the inverse fixed income segment, emphasizing U.S. high yield corporates.