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 UltraShort Consumer Staples (SZK)

What this ETF is trying to do

The ProShares UltraShort Consumer Staples (SZK) is an ETF that uses leverage and an inverse strategy. This means it is designed to move in the opposite direction of consumer staples companies. Because it is "leveraged" and "inverse," its goal is to provide returns that are related to the opposite performance of a specific group of stocks.

What the numbers show

When looking at this ETF, it is important to understand the difference between "price return" and "total return." Price return only tracks how the share price changes. Total return includes both the price change and any cash distributions paid out.

Based on the supplied data:

• Year-to-Date (YTD): The price return is approximately -15.04%, while the total return is approximately -11.03%.

• One Year: The price return is approximately -14.37%, while the total return is approximately -9.60%.

• Three Year: The price return is approximately -39.07%, while the total return is approximately -29.65%.

This ETF also has a history of reverse splits. In a reverse split, multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically, but it does not increase the actual value of your investment.

Income and distribution explanation

This ETF has a distribution yield of approximately 4.96%. This represents the cash distributions relative to the ETF price. Over the last 12 months, there were 4 distributions, which usually happen on a quarterly basis. While these payments provide cash income, a high yield does not guarantee that the investment value will stay stable.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's assets). While a falling market price is a "share-price decline," it does not always mean the NAV has declined. For this ETF, the erosion-risk score is 75, which is labeled as "Mild price erosion." This is a measurement of risk rather than a confirmed fact of total value loss.

Pros

• The ETF provides regular cash distributions (usually quarterly).

• It offers a way to participate in an inverse strategy related to consumer staples.

Cons

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

• It is a leveraged and inverse product, which can be complex.

• The total returns have been negative over the one-year and three-year periods.

Beginner takeaway

When looking at ETFs like SZK, remember that price returns and total returns are different. A high distribution yield can exist even when the share price is falling. Additionally, because this ETF has a history of reverse splits and shows mild price erosion risk, it is important to distinguish between mechanical price changes and actual investment performance.