Share-split context: A reverse split was recorded on May 28, 2026 with coefficient 0.5. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: ProShares Short MSCI EAFE -1X Shares (EFZ)

What this ETF is trying to do

EFZ is an "inverse" ETF. This means it is designed to move in the opposite direction of a specific group of international stocks known as the MSCI EAFE index. When that index goes down, this ETF is designed to go up.

What the numbers show

It is important to understand that "price return" and "total return" are different. Price return only tracks the change in the share price. Total return includes both the price change and any cash distributions paid out.

Because this ETF has a history of reverse splits, we use split-adjusted returns to look at performance. A reverse split happens when multiple old shares are combined into fewer new shares, which causes the price per share to rise mechanically.

Here is how the performance looks:

• Year-to-Date (YTD): The price return is approximately -8.54%, while the total return is approximately -6.34%.

• One Year: The price return is approximately -11.20%, while the total return is approximately -8.00%.

• Three Years: The price return is approximately -39.37%, while the total return is approximately -30.55%.

• Five Years: The total return is approximately -25.37%.

Income and distribution explanation

This ETF has a distribution yield of approximately 2.91%. This represents the cash distributions relative to the current share price of $23.18. Over the last 12 months, there were 4 distributions, which usually happen on a quarterly basis.

It is important to remember that a high distribution yield does not mean an investor earned that percentage as their total return. Distributions provide cash income, but they do not guarantee that the value of your original investment will stay the same.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). While a falling share price is not the same thing as NAV erosion, we use an "erosion-risk score" to measure this risk.

EFZ has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk rather than a confirmed fact that the fund's value has collapsed. There is no severe erosion-risk flag for this ETF.

Pros

• The ETF provides a way to participate in the inverse movement of international markets.

• It provides regular cash distributions (usually quarterly).

Cons

• The ETF has experienced significant share-price declines over the one-year and three-year periods.

• The total returns have been negative over multiple timeframes.

Beginner takeaway

When looking at ETFs like EFZ, it is helpful to distinguish between the cash you receive (distribution yield) and the actual change in your investment's value (total return). Because this is an inverse ETF, its price movements will behave differently than standard stock funds. Always look at the total return to see the full picture of how the investment has performed.