ProShares Short 7-10 Year Treasury

ProShares Short 7-10 Year Treasury (TBX) uses swaps to deliver the inverse (-1x) of the daily return of the ICE U.S. Treasury 7-10 Year Bond Index, so it gains when those bonds fall in price, usually because interest rates rise. Unlike most similar funds, it is not leveraged, and it is less rate-sensitive than inverse funds on 20+ year Treasuries. It resets daily, making it a short-term tool, and costs 0.95% a year.

• Over the year to Oct 27, 2026, TBX returned +8.7%, 7th of 7 among similar funds.
• Its 5-year annualized return was +7.0% and its 10-year +2.4%.
• In the 2020 COVID crash it fell 7.2% and regained its old high 24.4 months after the low.
• Its worst full calendar year was 2014 (-10.1%); its best was 2022 (+18.3%).
• The deepest fall in its price history was 41% (Apr 11, 2011 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 (42.95% of net assets), with its inverse exposure coming from 3 swap and futures positions rather than from owning the stocks outright.

• Over the three months to Aug 31, 2026, investors added a net $4.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.22%, +1.91%, +0.34%.

TBX aims to deliver -1x the daily return of the ICE U.S. Treasury 7-10 Year Bond Index, maintained by ICE Data Indices. The index tracks fixed-rate U.S. Treasury bonds maturing in more than seven and up to ten years. It excludes inflation-linked bonds, Treasury bills, agency debt and stripped zero-coupon issues, weights bonds by market value and resets monthly. Rather than owning those bonds, TBX gets its inverse exposure through derivatives chosen with ProShare Advisors' mathematical approach, mainly swap agreements: contracts with major financial institutions to exchange payments based on the index's moves.

As of August 31, 2026, about 47% of the fund's roughly $21 million in net assets sat in repurchase agreements (short-term loans, usually backed by government securities) and about 43% in cash. Three total return swaps appeared at about 3%, reflecting their accumulated gain or loss, not the size of the short position.

The fund rebalances every day. When the index rises, TBX loses money and trims its exposure; when it falls, TBX gains and adds exposure. This daily reset means returns over weeks or months can differ sharply from -1x the index, usually for the worse in choppy markets. Fees and financing costs add drag. If the index ever rose close to 100% in a day, holders could lose everything.

• TBX charges 0.95% a year, versus an average of 0.95% for the similar funds below.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.49% 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 $1,682 over 10 years (assuming a 5% annual return).

Its inverse exposure resets daily, and its prospectus warns that results over periods longer than a day will likely differ from -1x the index, sometimes significantly.

TBX can hedge against rising interest rates, as during the 2022 bear market, when it gained 17.5%. It offered no cushion in the 2020 COVID crash, though, falling 7.2% from February 19 to March 9, 2020, and taking about 24 months to recover. It launched in 2011, so it has no 2008 record. Its worst calendar year was 2014, a 10.1% loss, and its deepest drop, 41% from April 2011 to August 2020, was still unrecovered as of October 27, 2026. Anyone forced to draw on it in a bad stretch would lock in losses.

Its trailing yield was 2.56% as of October 27, 2026, paid quarterly. On $10,000, the SEC's standard example puts costs at $97 after one year and $1,682 after ten. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

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