ProShares Short High Yield ETF (SJB US) - Investment Proposition

Core Viewpoint - ProShares Short High Yield ETF (SJB) provides inverse daily exposure to U.S. high-yield corporate bond performance, allowing investors to hedge against credit-spread tightening or manage below-investment-grade exposure [1] Investment Strategy - The strategy utilizes derivatives referencing diversified high-yield benchmarks, collateralized by cash and treasuries, with a daily rebalance to target inverse sensitivity [1] - It is designed to benefit from widening credit spreads or rising rates and risk premia, while typically lagging in stable growth environments with improving issuer fundamentals [1] Use Cases - SJB can serve as a portfolio hedge for drawdown management, a tactical overlay around event risk, or a temporary transition exposure when reducing high-yield allocations [1] - Suitable investors include multi-asset allocators managing downside buffers and credit-oriented managers seeking cost-efficient spread hedges without shorting individual bonds [1] Key Risks - Daily compounding and basis differences versus specific holdings can create tracking gaps, and the fund may incur drag during calm or rallying credit markets where carry dominates [1]