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 Decline of the Retail Store ETF -1x Shares (EMTY)

What this ETF is trying to do

The EMTY ETF is an "inverse" ETF. This means it is designed to move in the opposite direction of a specific group of companies—in this case, retail stores. If those retail stores go down in value, this ETF is designed to go up.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return."

• Price return only tracks how much the share price itself changed.

• Total return includes both the price change and any cash payments (distributions) made to investors.

For EMTY, the numbers show different results depending on how much time has passed:

• Year-to-Date (YTD): The price return is approximately 0.62%, while the total return is approximately 2.63%.

• One Year: The price return is approximately 3.34%, while the total return is approximately 6.50%.

• Three Years: The price return has been approximately -29.39%, while the total return is approximately -19.48%.

Because this ETF has a history of reverse splits, we use split-adjusted returns to see how the value has changed over time. In a reverse split, multiple old shares are combined into fewer new shares, which causes the price per share to rise mechanically.

Income and distribution explanation

This ETF pays out cash to investors, known as distributions. The current distribution yield is approximately 2.17%. Over the last 12 months, there were 4 distributions, which usually happen every quarter. It is important to remember that a high yield does not guarantee you will make money; the share price could still go down even while you receive cash.

NAV erosion explanation

"NAV erosion" refers to a decline in the actual value of the fund's underlying assets. While a falling share price can look like erosion, they are not always the same thing. For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The ETF provides a way to potentially benefit when retail stores are performing poorly.

• It has provided a positive total return over the last year.

Cons

• The three-year price return and total return have both been negative.

• Because it is an inverse ETF, its performance can be complex and move differently than the general stock market.

Beginner takeaway

EMTY is an inverse ETF, meaning it aims to go up when retail stores go down. When studying this fund, always look at the total return to see how much you actually earned including distributions. Also, keep in mind that while this fund pays a distribution yield, it has experienced significant price declines over the last three years.