ProFunds Group, the world’s largest manager of leveraged and inverse funds,1 announced today that it is launching the first ETFs offering single inverse exposure to equity indexes on China, the U.S. Real Estate and the U.S. Basic Materials sectors. Single inverse ETFs seek to provide -100% of the return of an index or benchmark, before fees and expenses, for a single day.
The new ProShares ETFs are: Short FTSE/Xinhua China 25 (YXI), Short Real Estate (REK) and Short Basic Materials (SBM). The ETFs will list today on NYSE Arca.
With today’s launches, ProShares expands the nation’s only lineup of single inverse equity and fixed income ETFs to 14. These ETFs may be used by knowledgeable investors for short term periods to manage risk or seek profit when markets decline.
"Our existing double inverse ETFs based on these indexes are popular, but some investors prefer the lower volatility of single inverse exposure," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. "ProShares is committed to offering the broadest array of inverse ETFs to help knowledgeable investors protect their portfolios or potentially benefit from market dips."
|New Single Inverse ProShares|
|Short FTSE/Xinhua China 25||YXI||FTSE/Xinhua China 25 Index||-100% Daily||NYSE Arca|
Short Real Estate
|REK||Dow Jones U.S. Real EstateSM Index||-100% Daily||NYSE Arca|
|Short Basic Materials||SBM||Dow Jones U.S. Basic MaterialsSM Index||-100% Daily||NYSE Arca|
|Existing Single Inverse ProShares|
|Short Dow30||DOG||Dow Jones Industrial AverageSM||-100% Daily||NYSE Arca|
|Short S&P500||S&P 500® Index||-100% Daily||NYSE Arca|
|Short MidCap400||MYY||S&P MidCap 400TM Index||-100% Daily||NYSE Arca|
|Short SmallCap600||S&P SmallCap 600TM Index||-100% Daily||NYSE Arca|
|Short Russell2000||Russell 2000® Index||-100% Daily||NYSE Arca|
|Short QQQ||NASDAQ-100® Index||-100% Daily||NYSE Arca|
|Short Financials||SEF||Dow Jones U.S. FinancialsSM Index||-100% Daily||NYSE Arca|
|Short Oil & Gas||DDG||Dow Jones U.S. Oil & GasSM Index||-100% Daily||NYSE Arca|
|Short MSCI EAFE||EFZ||MSCI EAFE Index||-100% Daily||NYSE Arca|
|Short MSCI Emerging Markets||EUM||MSCI Emerging Markets Index||-100% Daily||NYSE Arca|
|Short 20+ Year Treasury||TBF||Barclays Capital 20+ Year U.S. Treasury Index||-100% Daily||NYSE Arca|
*Before fees and expenses
About ProFunds Group
ProShares is part of ProFunds Group, the largest manager of leveraged and inverse funds and ETFs. ProShares introduced the first inverse and leveraged ETFs in the U.S. in 2006. Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies. In addition, ProFunds Group subadvises the Canada-based Horizons BetaPro ETFs.
Most ProShares ETFs and many ProFunds employ leveraged investment techniques that magnify gains and losses and result in greater volatility in value. Each Short or Ultra ProShares ETF and leveraged or inverse ProFund seeks a return that is a multiple or inverse multiple (e.g., -200%) of the return of an index or other benchmark (target) for a single day. Due to the compounding of daily returns, ProShares’ and leveraged and inverse ProFunds’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the ProShares or ProFunds prospectus.
March 18, 2010
All investing involves risk, including the possible loss of principal. Short ProShares should lose value when their market indexes rise, and they entail certain risks, including the use of aggressive investment techniques (futures contracts, options, forward contracts, swap agreements and similar instruments), imperfect benchmark correlation, leverage and market price variance risks, all of which can increase volatility and decrease performance. ProShares are non-diversified and narrowly focused investments typically exhibit higher volatility. There is no guarantee that any ProShares ETF will achieve its investment objective.
The NAV value of ProShares Short FTSE/Xinhua China 25 is computed as of the close of the U.S. securities markets based upon the value of one or more U.S. exchange traded securities or instruments that reflect the values of the securities underlying the Index.
Carefully consider the investment objectives, risks, charges and expenses of ProShares and ProFunds before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. For ProShares ETF prospectuses visit proshares.com. For ProFunds mutual fund prospectuses visit profunds.com.
ProFunds Distributors, Inc. is distributor for ProFunds mutual funds. ProShares ETFs are distributed by SEI Investments Distribution Co., which is not affiliated with ProFunds Group or its affiliates.
“Dow Jones,” “DJ,” “Dow Jones U.S. Real EstateSM,” “Dow Jones U.S. Basic MaterialsSM,” “Dow Jones Industrial AverageSM,” “Dow Jones U.S. FinancialsSM” and “Dow Jones U.S. Oil & GasSM” are service marks of Dow Jones & Company, Inc. MSCI and EAFE are service marks of MSCI. “NASDAQ-100®” is a trademark of the NASDAQ OMX Group, Inc. “S&P 500®” Index, S&P MidCap 400TM Index and S&P SmallCap 600TM Index are trademarks of The McGraw-Hill Companies, Inc. The Russell 2000® Index is a trademark of Russell Investments. Barclays Capital and Barclays Capital Inc. are trademarks of Barclays Capital Inc. “FTSE/Xinhua China 25” is a trademark of FTSE/Xinhua Index Limited (“FXI”). All have been licensed for use by ProShares. “FTSE®” is a trademark of the London Stock Exchange PLC and The Financial Times Limited and is used by FXI under license. “Xinhua®” is a trademark of Xinhua Finance Limited and is used by FXI under license. ProShares are not sponsored, endorsed or promoted by these entities or their subsidiaries or affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
1 Source: Lipper, based on a worldwide analysis of all of the known providers of funds in these categories. The analysis covered ETFs, ETNs and mutual funds by the number of funds and assets (as of 6/30/2009).