Share-split context: A reverse split was recorded on May 24, 2018 with coefficient 0.25. 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 MIDCAP400 (MYY)

What this ETF is trying to do

The PROSHARES SHORT MIDCAP400 (ticker: MYY) is an ETF listed on the NYSE. This specific fund is classified as an "inverse" ETF. In simple terms, inverse ETFs are designed to move in the opposite direction of a specific index.

What the numbers show

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

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and any cash distributions (dividends) paid out.

For MYY, the numbers show a decline in value over several timeframes:

• Year-to-Date (YTD): The price return is approximately -9.39%, while the total return is approximately -7.31%.

• One Year: The price return is approximately -11.08%, while the total return is approximately -8.06%.

• Three Years: The price return is approximately -35.49%, while the total return is approximately -26.55%.

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

Income and distribution explanation

Some investors look at ETFs for cash income. MYY has a distribution yield of approximately 3.44%. This means the fund paid out trailing distributions of about $0.55 per share over the last year. These payments usually happen quarterly, and in the last 12 months, there were four payouts.

It is important to remember that a high distribution yield does not guarantee you will make money. A fund can pay out cash even if its share price is falling.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value, or 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 score" to measure risk.

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

Pros

• The fund provides a distribution yield of approximately 3.44%.

• It offers a way to participate in an inverse strategy related to midcap stocks.

Cons

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

• The total return has been negative across all measured timeframes (YTD, one-year, three-year, and five-year).

Beginner takeaway

When looking at MYY, notice that the total return is different from the price return. Because this is an inverse ETF, its value moves differently than the standard market. Always look at both the price movement and the distributions to get a full picture of how an ETF has performed.