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.

Understanding ProShares UltraShort Health Care -2x Shares (RXD)

RXD is a leveraged and inverse ETF. This means it is designed to move in the opposite direction of the health care sector and aims to multiply those moves by two. It is a high-risk tool used by some investors to bet against health care stocks.

What the Numbers Show

The recent performance of RXD shows a significant decline in share price. Because this ETF has a history of share splits, we look at split-adjusted returns to see how it has performed:

• Year-to-Date: The price return is -18.05%, while the total return is -16.54%.

• One Year: The price return is -29.18%, and the total return is -27.32%.

• Three Year: The price return is -43.17%, and the total return is -36.91%.

Price return measures only the change in the share price. Total return includes the distributions paid out to investors. In this case, both numbers show a downward trend over these time periods.

Income and Distribution Explanation

RXD has a distribution yield of approximately 2.42%. Over the last 12 months, it has made 4 payments, usually on a quarterly basis.

It is important for beginners to know that a distribution yield is not the same as a total return. While RXD provides some cash income, that income has not been enough to offset the decline in the share price.

Price and NAV Erosion Explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the data shows a severe erosion-risk flag. This flag was triggered because of the split-adjusted price trend and an erosion score of 30, which is labeled as "significant price erosion."

Additionally, RXD has a history of reverse splits (4 events in total). In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the per-share price. This mechanical increase does not restore lost investment value. The most recent reverse split occurred on May 28, 2026, with a coefficient of 0.5.

Pros

• Provides a way to profit if the health care sector declines.

• Offers quarterly cash distributions.

Cons

• Significant historical price decline over one, three, and five years.

• High erosion-risk score and a severe erosion-risk flag.

• Frequent reverse splits, which are often a sign of a falling share price.

Beginner Takeaway

RXD is not a traditional "buy and hold" investment. It is a leveraged inverse fund, meaning it is designed for short-term moves. The data shows that the share price has fallen significantly over several years, and the small distribution yield has not stopped this decline. Investors should be aware that high-risk tools like this can lose value quickly.