ProShares UltraShort 7-10 Year Treasury

ProShares UltraShort 7-10 Year Treasury (PST) is a leveraged, inverse ETF that seeks twice the opposite (-2x) of the daily return of the ICE U.S. Treasury 7–10 Year Bond Index, using swaps and futures instead of bonds. It is designed to gain when Treasury prices fall, with twice the daily swing of ProShares' -1x TBX at the same 0.95% expense ratio. Exposure resets daily, so longer-term results can stray far from -2x.

• Over the year to Oct 27, 2026, PST returned +15.1%, 5th of 7 among similar funds.
• Its 5-year annualized return was +11.1% and its 10-year +3.2%.
• In the 2020 COVID crash it fell 13.2% and regained its old high 24.4 months after the low.
• Its worst full calendar year was 2011 (-27.9%); its best was 2022 (+38.5%).
• The deepest fall in its price history was 79.2% (Jun 13, 2008 to Aug 4, 2020), not yet recovered.

As of Aug 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (79.81% of net assets), with its inverse exposure coming from 5 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Aug 31, 2026, investors withdrew a net $1.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.19%, +3.63%, +0.43%.

PST seeks twice the opposite (-2x) of the daily return of the ICE U.S. Treasury 7–10 Year Bond Index, before fees. ICE Data Indices builds the index. It tracks fixed-rate Treasury debt with more than seven and up to ten years left to maturity, weighted by market value. It excludes inflation-linked bonds, Treasury bills, agency debt and stripped zero-coupon issues, and resets its holdings monthly.

PST doesn't own those bonds. ProShare Advisors uses a mathematical approach to pick a mix of derivatives. These are chiefly swap agreements, which are contracts with large financial institutions to exchange payments based on the index, plus futures contracts. As of August 31, 2026, about 80% of its $10.7 million in net assets was in cash. Repurchase agreements, which are short-term loans backed by securities, made up about 12%. Four total return swaps and 10-year Treasury note futures provided the inverse exposure.

The fund rebalances daily. When the index rises, PST loses value and must cut its exposure. When the index falls, it adds exposure. Because of this reset, returns over weeks or years can differ sharply from -2x, often for the worse when prices swing back and forth. Fees and derivative costs also drag on results. The prospectus warns that an index gain near 50% in one day could wipe out the investment.

• PST charges 0.95% a year, versus an average of 0.95% for the similar funds below (1st of 3, cheapest first).
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.58% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $97 in the first year and $1,774 over 10 years (assuming a 5% annual return).

Its prospectus targets -2x the index for a single day and warns that longer-term results will likely differ, so it is built for short-term trading, not long-term holding.

PST can gain when rising rates hurt stocks and bonds together: it rose 37.4% during the 2022 stock bear market. But it fell 12.6% in the 2020 COVID crash and needed about 24 months to regain its February 2020 peak. Its record doesn't cover the full 2008 crisis. Its worst calendar year was 2011, down 27.9%. From June 2008 to August 2020 it lost 79.2%, a drop not recovered as of October 27, 2026. Anyone forced to cash out in a slump like that would lock in deep losses.

Over the 12 months to October 27, 2026, it paid about $0.60 a share, a 2.46% yield, in quarterly distributions. It costs 0.95% a year, or $97 in year one on $10,000 under the SEC's standard example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (treasury), same direction.