Strategy. The portfolio invests in derivatives that the portfolios sub-adviser, ProFund Advisors LLC (the sub-adviser), believes, in combination, should have similar daily return characteristics as twice the inverse (-2x) of the daily return of the Index. Cash balances arising from the use of derivatives will typically be held in money market instruments. The Index is a measure of large-cap U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of approximately 500 U.S. operating companies and real estate investment trusts selected through a process that factors in criteria such as liquidity, price, market capitalization and financial viability. As of December 31, 2024, the Index included companies with capitalizations between $ 5.774 billion and $3.785 trillion. The average capitalization of the … Show more… The portfolio invests in derivatives that the portfolios sub-adviser, ProFund Advisors LLC (the sub-adviser), believes, in combination, should have similar daily return characteristics as twice the inverse (-2x) of the daily return of the Index. Cash balances arising from the use of derivatives will typically be held in money market instruments. The Index is a measure of large-cap U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of approximately 500 U.S. operating companies and real estate investment trusts selected through a process that factors in criteria such as liquidity, price, market capitalization and financial viability. As of December 31, 2024, the Index included companies with capitalizations between $ 5.774 billion and $3.785 trillion. The average capitalization of the companies comprising the Index was approximately $ 103.854 billion. The Index is published under the Bloomberg ticker symbol SPX. Derivatives The portfolio invests in derivatives, which are financial instruments whose value is derived from the value of an underlying asset or assets, such as stocks, bonds or funds (including exchange traded funds (ETFs)), interest rates or indexes. The portfolio invests in derivatives as a substitute for directly shorting stocks in order to gain inverse leveraged exposure to the Index. These derivatives principally include: Swap Agreements Contracts entered into primarily with major global financial institutions for a specified period ranging from one day to more than one year. In a standard swap transaction, two parties agree to exchange the return (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. The gross return to be exchanged or swapped between the parties is calculated with respect to a notional amount, (e.g., the return on, or change in value of, a particular dollar amount invested in a basket of securities or an ETF representing a particular index). Futures Contracts Standardized contracts traded on, or subject to the rules of, an exchange that calls for the future delivery of a specified quantity and type of asset at a specified time and place or, alternatively, may call for cash settlement. Money Market Instruments The portfolio invests in short-term cash instruments that have a remaining maturity of 397 days or less and exhibit high quality credit profiles, including: U.S. Treasury Bills U.S. government securities that have initial maturities of one year or less, and are supported by the full faith and credit of the U.S. government. Repurchase Agreements Contracts in which a seller of securities, usually U.S. government securities or other highly liquid securities, agrees to buy them back at a specified time and price. Repurchase agreements are primarily used by the portfolio as a short-term investment vehicle for cash positions. The sub-adviser uses a mathematical approach to investing. Using this approach, the sub-adviser determines the type, quantity and mix of investment positions that the portfolio should hold to approximate, on a daily basis, the performance of twice the inverse (-2x) of the Index. The portfolio may gain inverse exposure to only a representative sample of the securities in the Index, or to securities not continued in the Index or in financial instruments, with the intent of obtaining exposure with aggregate characteristics similar to those of a multiple of the inverse of the Index. The sub-adviser does not invest the assets of the portfolio in securities or derivatives based on the sub-advisers view of the investment merit of a particular security, instrument, or company, nor does it conduct conventional investment research or analysis, or forecast market movement or trends, in managing the assets of the portfolio. The portfolio seeks to remain fully invested at all times in securities and/or derivatives that, in combination, provide inverse leveraged exposure to the Index without regard to market conditions, trends or direction. The portfolio seeks investment results for a single day, not for longer periods. On a daily basis, the portfolio will seek to position its portfolio so that its exposure to the Index is consistent with the portfolios investment objective. The Indexs movements during the day will affect whether the portfolios holdings need to be re-positioned. For example, if the Index has risen on a given day, net assets of the portfolio should fall. As a result, the portfolios inverse exposure will need to be decreased. Conversely, if the portfolios Index has fallen on a given day, net assets of the portfolio should rise. As a result, the portfolios inverse exposure will need to be increased. Because of daily rebalancing and the compounding of each days return over time, the return of the portfolio for periods longer than a single day will be the result of each days returns compounded over the period, which will very likely differ from twice the inverse (-2x) of the return of the Index over the same period. The portfolio will lose money if the level of the Index is flat, and it is possible that the portfolio will lose money even if the level of the Index falls, as a result of daily rebalancing, the Indexs volatility and the effects of compounding. See Principal Risks, below. The portfolio will concentrate its investments in a particular industry or group of industries to approximately the same extent as the Index is so concentrated. The portfolio is non-diversified. Show less