THEMATIC INVESTING

How Major Global Changes Create Investment Opportunity

Even prior to the global pandemic, sweeping changes in technology, demographics and consumer behavior are fundamentally transforming how we live and work. These transformative changes are broad, structural shifts—not passing fads—and they have enduring consequences for business and society. The transformation they bring will create winners and losers across the investment landscape, with impacts that won’t just be measured over the next fiscal quarter, but over the next quarter-century.

Three transformative changes impacting the world Transformative changes offer the ability to tap into intuitive themes that have long-term growth potential. And ProShares focuses on three powerful, global changes that will drive far-reaching shifts today and in the years to come.

URBANIZATION By 2050, nearly 70% of The rapid growth of cities will the global population will Millennials' preferences require massive investment in live in cities. are driving massive changes in spending and infrastructure while challenging household formation. existing social structures and business models.

$97 trillion is GENERATIONAL CHANGE needed in global infrastructure investment by Millennials have supplanted People globally 2040. Baby Boomers as the largest are living longer, generation, and their healthier lives. lifestyles and preferences will have wide impact.

CONSUMER TRANSFORMATION Proliferating global connectivity—especially Demand for goods and in developing markets— Shifting demographics are services is being reshaped is driving altering demand for by an increasingly informed transformation. products as well as their and digitally enabled global quality, price and speed of delivery. population. FROM TRANSFORMATIVE CHANGE TO INVESTMENT OPPORTUNITY

While transformative changes may be clear and observable, identifying the investment opportunities they create can be difficult, as the impacts of these changes are felt across global geographies, sectors, industries and Morningstar style boxes. By nature, conventional market classification systems are backward-looking. As a result, traditional indexes may fail to account for rapid changes or emerging opportunities. Shaping portfolios around transformative changes requires a research-oriented approach and sophisticated tool kit.

ProShares takes a forward-looking approach in analyzing the economic impacts created by converging transformative changes. FROM TRANSFORMATIVE Will the transformation create new industries or businesses—or CHANGE TO THEME threaten old ones? As new enterprises and business models take shape, it’s critical to examine the drivers of earnings and future profitability, to determine the dimensions of the potential investment opportunity.

Once an investable theme comes into focus, the next step is to isolate companies that may benefit from the long-term theme. These may include newer businesses dedicated to a specific FROM THEME TO theme, or established firms positioned to exploit the industry INVESTMENT STRATEGY dynamics. Understanding whether companies in the value chain are public or private, possess economies of scale, or have barriers to entry is crucial to pinpointing those poised for potential future growth. USING THEMATIC ETFS IN A PORTFOLIO

ProShares Thematic ETFs focus on relatable trends we experience in our everyday lives. Introducing them into a diversified portfolio may help investors stay invested and focus on seeking long-term growth. Picking single is difficult and may increase risk, while traditional index ETFs may be too broad to capture a targeted, high-conviction opportunity. ProShares Thematic ETFs rely on transparent, rules-based indexes with precise approaches customized to capture a range of companies that may stand to benefit from transformative changes. ALTERNATIVES 10% ProShares Thematic ETFs may be used: • To differentiate portfolios and engage investors on the themes that resonate with them EQUITIES • As a satellite30% to traditional core60% equity and fixed income portfolios • To add “Alpha” potential to existing allocations

Hypothetical Investment Portfolio

THEMATIC Thematic 10% ETFs ALTERNATIVES 10%

Sector ETFs

CORE FIXED INCOME EQUITIES PORTFOLIO 30% 50%

Concentrated Active Managers

For illustrative purposes only. Alpha is a measure of the risk-adjusted return of an investment in relation to its benchmark index. If the return is higher, with the same amount of risk, alpha is positive. If the return is lower, alpha is negative. PROSHARES THEMATIC INVESTMENT OPPORTUNITIES

Global Infrastructure As economic opportunity drives the growth of cities, TOLZ improvements to critical infrastructure that DJ Brookfield Global support water and energy access, transportation, Infrastructure ETF and communication will be essential.

GENERATIONAL CONSUMER Humanization of Pets CHANGE TRANSFORMATION As Millennials delay having children and Baby Boomers PAWZ become empty-nesters, more and more people in both Pet Care ETF groups are making pets part of their families. And pet care is big business.

URBANIZATION Retail Disruption As consumers’ habits change and shoppers ONLN CLIX EMTY move online, e-commerce sales are growing Online Retail ETF Long Online/Short Decline of the rapidly—and undermining in-store retail. Stores ETF Retail Store ETF

Find Out More. Visit ProShares.com or consult your financial professional.

Sources: World Economic Forum (global infrastructure spending needed); World , “Urban Development,” last updated 4/20/2020; “Millennials overtake Baby Boomers as America’s largest generation,” Pew Research, 4/28/2020; Goldman Sachs, “Millennials Coming of Age” infographic retrieved from goldmansachs.com (millennial preferences); United Nations, “Global Life Expectancy” infographic retrieved from UN.org (global life expectancy).

Investing involves risk, including the possible loss of principal. These ProShares ETFs are non-diversified and entail certain risks, which may include risks associated with the use of derivatives (such as 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 positions are not intended to hedge the portfolio in market downturns, but rather to allow stocks with unfavorable outlooks to contribute to performance. Short positions lose value as prices increase. TOLZ is subject to risks faced by companies in the infrastructure, energy and utilities industries to the same extent as the Dow Jones Brookfield Global Infrastructure Composite Index is so concentrated. This ETF invests in master limited partnerships (MLPs). Investments in MLPs expose the ETF to certain risks associated with investing in partnerships. Changes in U.S. tax laws could revoke the pass-through attributes that provide the tax efficiencies that make MLPs attractive investment structures. MLPs may also have limited financial resources, may be relatively illiquid, and may be subject to more erratic price movements because of the underlying assets they hold. In addition, a portion of the ETF’s distributions may be a return of capital, which constitutes the return of a portion of a shareholder’s original investment. Under tax rules, returns of capital are generally not currently taxable, but lower a shareholder’s tax basis in their shares. Such a reduction in tax basis will result in larger taxable gains and/or lower tax losses on a subsequent sale of shares. PAWZ is subject to the risks faced by companies in the pet care industry. Although the pet care industry has historically seen steady growth and has been resilient to economic downturns, these trends may not continue or may reverse. Investments in smaller companies typically exhibit higher volatility. Small- and mid-cap companies may have limited product lines or resources, may be dependent upon a particular market niche and may have greater fluctuations in price than the stocks of larger companies. Small- and mid-cap companies may lack the financial and personnel resources to handle economic or industry-wide setbacks and, as a result, such setbacks could have a greater effect on small- and mid-cap security prices. International investments may involve risks from: geographic concentration, differences in valuation and valuation times, unfavorable fluctuations in currency, differences in generally accepted principles, and from economic or political instability. Emerging markets are riskier than more developed markets because they may develop unevenly or may never fully develop. Investments in emerging markets are considered speculative. Investments in the consumer discretionary and retailing industries are subject to risks such as changes in domestic and international economies, interest rates, competition and consumer confidence; disposable household income; consumer tastes and preferences; intense competition; changing demographics; marketing and public perception; and dependence on third-party suppliers and distribution systems. Please see the summary and full prospectus for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective. 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. Obtain them from your financial professional or broker-dealer representative, or visit ProShares.com ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor. © 2020 PSA BR-2020-5069