ETF Risk Report: USD Buyer beware: Every ETF holds the full risk of its underlying equities Disclosures in the best interest of investors

ProShares Ultra Gray Swan Event Risks exist for every equity held by USD. Gray swan events include accounting fraud, management failures, failed internal controls, M&A problems, restatements, etc. These risks occur infrequently, but Gray Swan Event Factor for USD 1.16% consistently for all equities. Equities account for 75.48% of USD’s assets. Most investors ignore these risks until after they are disclosed; whereupon a stock’s price drops precipitously. Just as insurance companies can predict likely costs for a driver’s future car accidents based on the driver’s history, Watchdog Research contacts each ETF asking how they notify investors about we predict the likely cost (price drop) for USD following accounting governance risks in equities in their fund. We will publish their response gray swan disclosures within its holdings. The expected when received. price decrease across the USD equity portfolio is 1.16%. However, individual equity risks vary signicantly. This report helps investors know their risk exposure.

Inception Date: 01/30/2020 Year-to-Date Return: 15.89% The ProShares Ultra Semiconductors ETF tracks the investment results of the Dow Jones U.S. Semiconductors Net Assets: $225m 1-Year Return: 213.54% Index, seeking two times the daily return (2x), including the impact of compounding, for a single day. The Fund Price: $119.87 3-Year Return: 39.72% invests or seeks exposure principally in equity securities, Net Asset Value (NAV): $119.84 5-Year Return: 54.57% derivatives and money market instruments of a representative sample of companies in the Net Expense Ratio: 0.95% Yield: 0.06% semiconductors sub-sector of the U.S. equity market, including production of semiconductors, integrated chips, As of: 03/31/2021 capital equipment and motherboards. The Fund rebalances and recompounds daily. Sector funds are by denition non-diversied.

Company Ticker Held Current GSEF Category Value Top Holdings by Value

Nvidia Corp. NVDA Long 0.98% Low $55.6m This table shows Gray Swan Event Factors for the top ten equity holdings by dollar-value, as of Sep 24, 2021. Corp. INTC Long 1.66% Low $25.3m Investors should invest in ETFs only when they adequately Broadcom Inc. AVGO Long 1.11% Low $21.7m understand an ETF’s risks. Buyer beware. ETF prospectuses generally acknowledge that ETF managers Inc. TXN Long 0.75% Low $19.8m do NO traditional risk analysis on equities in their fund. Inc. QCOM Long 1.59% Low $18m Our Gray Swan Event Factors are meant to inform investors of signicant traditional accounting and Inc. AMAT Long 0.87% Low $14.6m managerial risks for the equities in each ETF.

Advanced Micro Devices AMD Long 1.08% Low $12.7m ETF Risk Reports are published quarterly on dedicated Inc. MU Long 1.05% Low $10.6m platforms like Factset, Renitiv, Capital IQ etc. Weekly updates are available for a paid subscription. Corp. LRCX Long 0.91% Low $10.4m For more details contact: [email protected] Nxp Semiconductors ... NXPI Long 1.71% Low $6.33m

Company Ticker Held Current GSEF Category Value Riskiest Holdings

Mks Instruments Inc. MKSI Long 3.34% Mid $1.1m This table shows the individual Gray Swan Event Factors for this ETF’s most at-risk equities as of Sep 24, 2021. On Semiconductor Corp. ON Long 2.50% Mid $1.82m The average equity GSEF across 6,500 public equities is Cirrus Logic Inc. CRUS Long 1.84% Low $546k 1.25%. Equities with a GSEF between 5% and 10% are considered high risk. Equities with a GSEF above 10% are Inc. XLNX Long 1.82% Low $3.97m extreme risks. Gray Swan Event Factors are derived from skilled analysts Nxp Semiconductors ... NXPI Long 1.71% Low $6.33m charting 15 years of negative gray swan event disclosures Intel Corp. INTC Long 1.66% Low $25.3m against stock price declines following such disclosures. A Gray Swan Event Factor is an assessment of the Qualcomm Inc. QCOM Long 1.59% Low $18m likelihood of, and 12-month price risk for, gray swan Microchip Technolog... MCHP Long 1.48% Low $4.57m events for each equity.

Monolithic Power Sy... MPWR Long 1.15% Low $1.79m

Solaredge Technolog... SEDG Long 1.14% Low $1.6m

Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 This table lists the equity holdings for ProShares Ultra Semiconductors ranked by highest GSE Factor (riskiest rst). We list all equities (US and foreign) for this ETF. However, some foreign listings only show via a ticker.

To further evaluate risks, you can details for each company by opening its Brief Watchdog Report available for viewing and pdf download. The report is free to readers for their personal consumption and it includes the executive summary data pulled from the full Watchdog Report.

To learn more about the full Watchdog and GSEF Reports go to last page or visit watchdogresearch.com.

Company Access Details Ticker Held Current GSEF Category Value

Mks Instruments Inc. Watchdogresearch.com/watchdog/$MKSI MKSI Long 3.34% Mid $1.1m

On Semiconductor Corp. Watchdogresearch.com/watchdog/$ON ON Long 2.50% Mid $1.82m

Cirrus Logic Inc. Watchdogresearch.com/watchdog/$CRUS CRUS Long 1.84% Low $546k

Xilinx Inc. Watchdogresearch.com/watchdog/$XLNX XLNX Long 1.82% Low $3.97m

Nxp Semiconductors N.V. Watchdogresearch.com/watchdog/$NXPI NXPI Long 1.71% Low $6.33m

Intel Corp. Watchdogresearch.com/watchdog/$INTC INTC Long 1.66% Low $25.3m

Qualcomm Inc. Watchdogresearch.com/watchdog/$QCOM QCOM Long 1.59% Low $18m

Microchip Technology Inc. Watchdogresearch.com/watchdog/$MCHP MCHP Long 1.48% Low $4.57m

Monolithic Power Systems Inc. Watchdogresearch.com/watchdog/$MPWR MPWR Long 1.15% Low $1.79m

Solaredge Technologies Inc. Watchdogresearch.com/watchdog/$SEDG SEDG Long 1.14% Low $1.6m

Broadcom Inc. Watchdogresearch.com/watchdog/$AVGO AVGO Long 1.11% Low $21.7m

Advanced Micro Devices Watchdogresearch.com/watchdog/$AMD AMD Long 1.08% Low $12.7m

Micron Technology Inc. Watchdogresearch.com/watchdog/$MU MU Long 1.05% Low $10.6m

Cree Inc. Watchdogresearch.com/watchdog/$CREE CREE Long 1.00% Low $1.26m

Teradyne, Inc. Watchdogresearch.com/watchdog/$TER TER Long 1.00% Low $2.49m

Nvidia Corp. Watchdogresearch.com/watchdog/$NVDA NVDA Long 0.98% Low $55.6m

Kla Tencor Corp. Watchdogresearch.com/watchdog/$KLAC KLAC Long 0.95% Low $5.54m

Qorvo, Inc. Watchdogresearch.com/watchdog/$QRVO QRVO Long 0.94% Low $2.46m

Universal Display Corp. Watchdogresearch.com/watchdog/$OLED OLED Long 0.93% Low $1.06m

Lam Research Corp. Watchdogresearch.com/watchdog/$LRCX LRCX Long 0.91% Low $10.4m

Silicon Laboratories Inc. Watchdogresearch.com/watchdog/$SLAB SLAB Long 0.91% Low $765k

Enphase Energy, Inc. Watchdogresearch.com/watchdog/$ENPH ENPH Long 0.89% Low $2.78m

Applied Materials Inc. Watchdogresearch.com/watchdog/$AMAT AMAT Long 0.87% Low $14.6m

Entegris Inc. Watchdogresearch.com/watchdog/$ENTG ENTG Long 0.84% Low $1.86m

Semtech Corp. Watchdogresearch.com/watchdog/$SMTC SMTC Long 0.83% Low $498k

Skyworks Solutions, Inc. Watchdogresearch.com/watchdog/$SWKS SWKS Long 0.83% Low $3.53m

Texas Instruments Inc. Watchdogresearch.com/watchdog/$TXN TXN Long 0.75% Low $19.8m

Power Integrations Inc. Watchdogresearch.com/watchdog/$POWI POWI Long 0.75% Low $555k

Marvell Technology Group Ltd Mrvl - MRVLUW Long - NA $5.33m

Maxim Integrated Products - MXIM Long - NA $3.15m

Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 This is a story about four people investing in ETFs. They are named Everybody, Somebody, Anybody and Nobody.

Everybody wanted to buy ETFs because ETFs are such great investments. “Not so fast,” said Somebody. “Nobody should buy an ETF without rst understanding the accounting and disclosure risks for the ETF’s basket of stocks.”

Everybody scoffed: “Don’t be silly! What could go wrong? Let’s just BUY immediately! Somebody at the ETF must have done that work for us.” Anybody explained how Everybody was wrong in their thinking: “Most ETF prospectuses specically say Nobody at the ETF actually does traditional stock risk analysis.” Everybody read many ETF prospectuses, and, sure enough, Anybody was right! So, while Everybody should know the risks before buying an ETF, Nobody was actually doing it.

Until this report was created.

Watchdog Research, Inc. educates investors on accounting and disclosure risks.

Full Watchdog and Gray Swan Event Factor Reports offer in-depth information about identied risks. See more about Watchdog Research Inc. and available subscriptions below.

Watchdog Research, Inc. is an independent research organization that does not make "buy", "sell" or "hold" recommendations and does not trade in public stocks.

About Watchdog Research, Inc.

Watchdog Research, Inc. is an independent research provider and publisher of Watchdog Reports.

Watchdog Research analysts track gray swan events and critical disclosures for over 4,500 public companies. Gray swan events are reliably predictable, yet infrequent disclosures that expose a company's failures in accounting, internal controls, management integrity and which negatively impact stock prices or increase probabilities for a lawsuit.

Watchdog Reports identify red ags, issues, and other anomalies in nancial reporting. The reports contain warning signs, red ags, material disclosures, and peer analysis for use in valuation, risk analysis, due diligence research, and idea generation. Watchdog Reports are designed to assist investment professionals fulll their duciary or suitability obligations and to help investors, executives, board members, regulators and educators learn what they need to know about publicly traded companies.

Watchdog Research, Inc. is headquartered in Ave Maria, FL, and it utilizes over 75 specialists and analysts to provide accurate and timely information to its readers. So far, it has delivered 300,000 reports to over 27,000 individuals, from over 9,000 investment rms and to 4,000+ public company corporate board members.

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An annual subscription to Watchdog Reports costs $5,000 per year per individual subscriber (group subscription rates available). Subscriptions provide unlimited access to 4,500+ public company Watchdog Reports. Reports are updated weekly. A subscription can also entitle users to download the reports weekly on Factset, Renitiv (ex Thomson Reuters), Capital IQ or other platforms. Each company Watchdog Report identies red and yellow ags, issues and other risks for the named company. A full report includes in-depth details and lists original SEC lings and source documents. Reports contain warning signs, attention ags, material disclosures, and peer analysis for use in valuation, risk analysis, due diligence research, and D&O insurance underwriting.

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An annual subscription to our Gray Swan Event Factor Reports costs $8,000 per year per individual subscriber (group subscription rates available). A GSEF annual subscription automatically includes a subscription to our Watchdog Reports. The GSEF is a forward looking valuation factor. It identies the percent a stock’s price is overstated when accounting for the likelihood of a future negative accounting or disclosure event. These risks are dicult to quantify and tend to be ignored or disregarded as negligible. However, they often lead to substantial losses with each underlying stock. Before buying, selling or recommending a stock, anyone with a duciary or suitability obligation should review the stock’s Gray Swan Event Factor to quantify the stock’s potential losses for future accounting and disclosure risks. GSEF Reports are updated weekly on our website and quarterly on Factset, Renitiv (ex Thomson Reuters), Capital IQ and other platforms. The full paid version includes detailed break-outs of contributing risk factors, with links to original source materials.

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