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ProShares Rolls Out Three New Short ETFs
By Olivier Ludwig | March 18, 2010 10:20 am

Related ETFs: TBT

ProShares, the world’s largest purveyor of leveraged and inverse ETFs, launched three short funds on Thursday, including one targeting China’s 25 largest companies in a move that raises its number of specialty funds to 95.

The ProShares Short FTSE/Xinhua China 25 (NYSEArca: YXI) is the inverse of FXI, an iShares ETF that takes the long position on China’s largest and most heavily traded companies listed on the Hong Kong Stock Exchange. The Bethesda, Md.-based firm also launched the ProShares Short Basic Materials ETF (NYSEArca: SBM) and the ProShares Short Real Estate ETF (NYSEArca: REK). Expense ratios for all of the company’s ETFs are 0.95 percent.

The new ETFs join a ProShares lineup of 92 inverse and leveraged ETFs, the largest one of which is the ProShares UltraShort 20+ Year Treasury ETF (NYSEArca: TBT). It’s the single largest leveraged and inverse fund, with about $4.5 billion in assets as of this week. Leveraged and inverse funds are designed for more hands-on, risk-tolerant investors, as long-term returns can vary widely from daily objectives.

The new ETFs seek daily investment results that correspond to the inverse of the daily performance of the FTSE/Xinhua China 25 Index, the Dow Jones U.S. Basic Materials Index and the Dow Jones U.S. Real Estate Index, respectively. They’re not designed to achieve these objectives over a period of time greater than one day.

The company recently filed with the Securities and Exchange Commission to launch seven funds targeting international markets and the U.S. regional banking sector. Once the SEC approves those, ProShares will have more than 100 ETFs.

 

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