How can Short ProShares have income distributions?
Short ProShares may use derivative products, including futures contracts and/or swap agreements, to obtain short exposure to indexes or benchmarks. These derivatives generally provide the fund with the desired short exposure to an index or benchmark. As a result, the fund has cash available to invest in debt securities and/or money market instruments which generally earn prevailing interest rates. This investment strategy allows ProShares to pass on income (net of expenses) to shareholders.
