MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
|
|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, March 28, 2008 ProShares Unveils a Pair of New ETFs ProShares took the wraps off two new ETFs at the American Stock Exchange on Thursday. The Bethesda, Maryland-based ETF shop added the Ultra and UltraShort Telecommunications ETFs to its product menu. "This year’s decline in the broad market may drive many investors to sector strategies to find pockets of opportunity,” said Michael Sapir, group chairman and CEO of ProFunds Group. BETHESDA, Md.--(BUSINESS WIRE)--Telecom stocks make up one of the market's most dynamic and volatile sectors, driven by rapidly changing technologies, the rapid spread of wireless communication and the convergence of communication, the internet and consumer entertainment. Now investors can easily get short or magnified exposure to this sector—and enjoy the benefits of ETF investing—with two new ETFs from ProShares. ProFunds Group, which manages more than 80% of the nation’s short and leveraged fund assets,1 today introduces two new ProShares ETFs: Ultra and UltraShort Telecommunications ProShares, trading on the American Stock Exchange®. These ETFs combine the convenience and trading flexibility of ETFs with the potential benefits of magnified or short exposure to the telecom sector. The ETFs, which are priced and traded throughout market hours, can be used in a variety of ways, including: - To potentially profit from sector downturns with short telecom exposure - To magnify the impact of your investment dollar by seeking double daily index performance (before fees and expenses) - To easily adjust overall portfolio exposure to the telecom sector - To execute sector rotation strategies "This year’s decline in the broad market may drive many investors to sector strategies to find pockets of opportunity,” said Michael Sapir, ProFunds Group Chairman and CEO. “With Ultra Sector and UltraShort Sector ProShares covering 12 sectors and industries, we now offer sector investors the opportunity to easily get magnified exposure or short exposure to any area of the market.” Ultra Telecommunications ProShares (LTL) for magnified market exposure Ultra Telecommunications ProShares provide you with twice the market exposure as an ordinary telecommunications ETF for the same amount of cash. The ProShares ETF is designed to double the daily performance of its benchmark, the Dow Jones U.S. Select Telecommunications IndexSM (DJSTEL). That means on days when the index rises by 1%, Ultra Telecommunications ProShares would rise by 2%, before fees and expenses. Note that the fund’s magnified exposure applies to losses as well as gains: Its net asset value should lose approximately twice the same amount, on a percentage basis, as any decrease in the daily performance of the index. UltraShort Telecommunications ProShares (TLL) to hedge or profit from downturns You can seek profit from a market downturn or seek to hedge existing positions with UltraShort Telecommunications ProShares—the first short telecommunications ETF. The ProShares ETF is designed to double the daily inverse performance of its benchmark, Dow Jones U.S. Select Telecommunications IndexSM (DJSTEL). So on days when the index goes down by 1%, the fund should increase by 2%, before fees and expenses, and when the index rises, the fund should fall. About ProShares and ProFunds Group ProShares, launched in June 2006, is now the nation’s fifth-largest ETF provider.2 It is part of the $23 billion ProFunds Group, the nation’s largest manager of short and leveraged funds.3 ProFunds Group also manages more than 100 ProFunds mutual funds. Since 1997, ProFunds has provided mutual fund investors with easier access to sophisticated investment strategies, with offerings that include mutual funds that seek to magnify daily index performance and funds that seek to increase in value when markets decline. ProFunds Group describes the portfolio managers common to ProFund Advisors LLC, advisor to ProFunds mutual funds, and ProShare Advisors LLC, advisor to ProShares ETFs. JPMorgan Worldwide Securities Services provides a full range of ETF services to ProShares including fund accounting and administration, transfer agency and custody. All investing involves risk, including the possible loss of principal. Investing in Ultra Telecommunications ProShares and UltraShort Telecommunications ProShares involves certain risks, specifically, market, correlation, credit, liquidity, aggressive investment technique, non-diversification, repurchase agreement, and inverse correlation risk in the UltraShort Telecommunications ProShares. These funds do not constitute a complete investment program and they may not be suitable for all investors. Carefully consider the investment objectives, risks, and charges and expenses of ProShares and ProFunds before investing. This and other information can be found in their prospectuses. Read the prospectus(es) carefully before investing. For a ProShares ETF prospectus, visit www.proshares.com and seek advice from your financial adviser or broker/dealer representative. Financial professionals can also call 866-PRO-5125. For a ProFunds mutual funds prospectus, call 888-PRO-FNDS (individual investors) or 888-PRO-5717 (financial professionals) or visit www.profunds.com. Read the prospectus(es) carefully before investing. . ProFunds Distributors, Inc., is distributor for ProFunds mutual funds. ProShares ETFs are distributed by SEI Investments Distribution Co., which is not affiliated with any ProFunds Group affiliate. “Dow Jones®,” “Dow Jones U.S. Sector Indexes,” “Dow Jones Select Sector Indexes” and “Dow Jones U.S. Select Telecommunications Index” are service marks of Dow Jones & Company, Inc. Dow Jones U.S. Sector Indexes have been licensed by Dow Jones & Company, Inc., for use by ProShares. ProShares have not been passed on by Dow Jones & Company, Inc., or its affiliates as to their legality or suitability. ProShares are not sponsored, endorsed, sold or promoted by Dow Jones & Company, Inc., or its affiliates, and they make no representation regarding the advisability of investing in these products. Printed from: MFWire.com/story.asp?s=17803 Copyright 2008, InvestmentWires, Inc. All Rights Reserved |