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ProShares Files For International, Fixed-Income ETFs
Written by IndexUniverse Staff   
Wednesday, 27 June 2007 10:20

In a major new filing, ProShares has petitioned the Securities and Exchange Commission (SEC) for the right to launch twenty-five new leveraged, inverse and inverse-leveraged exchange-traded funds (ETFs), including the first-ever ProShares international and fixed-income products. The funds are designed to provide 200%, negative 100% and negative 200% exposure to the daily movement of their benchmark indexes. Like all ProShares ETFs, they change 0.95% in expenses.

Curiously, the filing only covers inverse (“Short”) and inverse-leveraged (“UltraShort”) ETFs for international and fixed-income. We can assume that leveraged (+200%) ETFs are in the works, but those haven’t hit the SEC yet.

The most highly anticipated ETFs in the new filing are the international funds, which cover four very high-profile markets:

Short MSCI EAFE UltraShort MSCI EAFE
Short MSCI Emerging Markets UltraShort MSCI Emerging Markets
Short MSCI Japan UltraShort MSCI Japan
Short FTSE/Xinhua China 25 UltraShort FTSE/Xinhua China 25

Traders are certain to jump at the chance to gain leveraged exposure to the highly volatile markets, and each of these funds will likely gain assets quickly. To date, ProShares has had the most success with high-profile and high volatility indexes; the emerging markets and FTSE/Xinhua indexes certainly fit that bill.

ProShares' filing also includes an interesting group of fixed-income products: 

Short Lehman Brothers 7-10 Year U.S. Treasury UltraShort Lehman Brothers 7-10 Year U.S. Treasury
Short Lehman Brothers 20+ Year U.S. Treasury UltraShort Lehman Brothers 20+ Year U.S. Treasury
Short iBoxx $ Liquid Investment Grade UltraShort iBoxx $ Liquid Investment Grade
Short iBoxx $ Liquid High Yield UltraShort iBoxx $ Liquid High Yield

Rounding things out are three sector funds:

Ultra NASDAQ Biotechnology Short NASDAQ Biotechnology UltraShort NASDAQ Biotechnology
Ultra Dow Jones Select Biotechnology Short Dow Jones Select Biotechnology UltraShort Dow Jones Select Biotechnology
Ultra Dow Jones Select Telecommunications Short Dow Jones Select Telecommunications UltraShort Dow Jones Select Telecommunications

The ProShares ETFs have been one of the fastest-growing ETF families over the past year, and this new filing is likely to extend that streak.

 

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