ProShares Launches Four New UltraShort ETFs to Trade on the American Stock Exchange
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New York, NY, July 13, 2006—ProShares, together with The American Stock Exchange® (Amex®), today announced the addition of four exchange traded funds (ETFs) to the ProShares lineup. UltraShort ProShares are the first ETFs designed to provide magnified short exposure to well-known market indexes.
The new UltraShort ProShares seek daily investment results that correspond to twice the inverse of those indexes, before fees and expenses. ProShares, which is part of ProFunds Group, introduced its family of innovative ETFs on June 21, 2006, with eight other ETFs offering short or magnified exposure to popular indexes.
"Over the past few years, we have seen increasing investor interest in more sophisticated strategies—especially strategies to use when markets are heading down. But for investors who use ETFs, it hasn’t necessarily been easy to execute those strategies. Shorting a traditional ETF can involve setting up a margin account, borrowing securities—and, potentially, losing more than the original investment," said Michael Sapir, CEO of ProShare Advisors LLC.
"Because UltraShort ProShares offer built-in magnified short exposure to an index, investors can ‘go short’ with a single ETF trade," he continued. "Whether the strategy is to capitalize on a trend or hedge against the risk of a decline, magnified exposure means the investor can commit half the dollars to potentially obtain the desired level of exposure. And, while both gains and losses are magnified, unlike other shorting strategies, the investor can’t lose more than the original investment."
"We are very excited to welcome ProShares back to the Amex for their new and innovative ETF listings," said Cliff Weber, Senior Vice President of the ETF Marketplace. "These ETFs accommodate a growing demand from investors that are seeking targeted ETFs to complement their investment portfolios."
With the launch of the UltraShort ProShares, the firm now offers 12 ETFs. Four Short ProShares are the first ETFs designed to provide short exposure to well-known market indexes, seeking daily investment results that correspond to the inverse of the indexes, before fees and expenses. Four Ultra ProShares are the first ETFs designed to magnify daily index performance, seeking daily investment results that correspond to twice the performance of those indexes, before fees and expenses.
Names of ProShares, their objectives and ticker symbols:
| Fund Name | Daily Objective* | Ticker Symbol (NAV) | |||
|---|---|---|---|---|---|
| UltraShort QQQ® ProShares | Double the inverse of the NASDAQ-100 Index® |
QID |
|||
| UltraShort S&P500® ProShares | Double the inverse of the S&P 500® Index |
SDS |
|||
| UltraShort Dow30SM ProShares | Double the inverse of the Dow Jones Industrial AverageSM |
DXD |
|||
| UltraShort MidCap400 ProShares | Double the inverse of the S&P MidCap 400 |
MZZ |
|||
| Fund Name | Daily Objective* | Ticker Symbol (NAV) | |||
|---|---|---|---|---|---|
| Short QQQ ProShares | Inverse of the NASDAQ-100 Index |
PSQ |
|||
| Short S&P500 ProShares | Inverse of the S&P 500 Index |
SH |
|||
| Short Dow30 ProShares | Inverse of the Dow Jones Industrial Average |
DOG |
|||
| Short MidCap400 ProShares | Inverse of the S&P MidCap 400 |
MYY |
|||
| Fund Name | Daily Objective* | Ticker Symbol (NAV) | |||
|---|---|---|---|---|---|
| Ultra QQQ ProShares | Double the NASDAQ-100 Index |
QLD |
|||
| Ultra S&P500 ProShares | Double the S&P 500 Index |
SSO |
|||
| Ultra Dow30 ProShares | Double the Dow Jones Industrial Average |
DDM |
|||
| Ultra MidCap400 ProShares | Double the S&P MidCap 400 |
MVV |
|||
About ProShares and ProFunds Group
The ProShares are managed by a team headed by Chief Investment Officer Gus Fleites, an ETF industry veteran who also leads the firm's overall ETF initiatives. In addition to ProShares ETFs, ProFunds Group manages ProFunds mutual funds, the nation's largest lineup of indexed mutual funds.¹ Since 1997, ProFunds has provided mutual fund investors access to innovative mutual fund strategies, including 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 ProShares Advisors LLC, advisor to ProShares ETFs.
About The American Stock Exchange®
The American Stock Exchange® (Amex®) is the only primary exchange that offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRSSM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 175 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.
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 you financial advisor or broker dealer representative. Financial professional 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.
Jul 13, 2006Notes:
* Before fees and expenses.
¹ Source: Lipper, October 12, 2005. Lipper defines "indexed fund" as an open-end mutual fund (not an ETF) that falls into one of the following subcategories: pure index, enhanced index or index-based. The majority of ProFunds are categorized by Lipper as enhanced index funds.
ProShares ETFs are distributed by SEI Investments Distribution Co. (SEI), which is not affiliated with any Profunds Group affiliate. ProFunds mutual funds are distributed by ProFunds Distributors, Inc. (PDI). SEI and PDI are not affiliated.
Investing involves risk, including the possible loss of principal. Please note that in addition to the normal risks associated with investing, ProShares and ProFunds entail certain risks, including, in all or some cases, aggressive investment technique, inverse and imperfect correlation, leverage, market price variance and short sale risks. These risks may pose risks different from, or greater than, those associated with a direct investment in the securities underlying the funds’ benchmarks, can increase volatility, and may dramatically decrease performance. ProShares are non-diversified funds and, therefore, subject to greater risk than diversified funds. Please see the prospectus for a more complete description of these risks. Investing in ProShares involves different fees and risks than maintaining a margin account.
"QQQ®" and "NASDAQ-100®" are trademarks of The Nasdaq Stock Market, Inc. "S&P 500®" Index and S&P MidCap 400 Index are trademarks of The McGraw-Hill Companies, Inc. "The Dow 30SM" is a service mark of Dow Jones & Company, Inc. All have been licensed for use by ProShares. ProShares have not been passed on by these entities or their affiliates as to their legality or suitability. ProShares are not sponsored, endorsed, sold or promoted by these entities or their affiliates, and they make no representation regarding the advisability of investing in these products. These entities and their affiliates make no warranties and bear no liability with respect to the ProShares.
Media Contacts
- ProShares: Tucker Hewes, Hewes Communications, Inc., 212-207-9451, tucker@hewescomm.com
- American Stock Exchange: Mary Chung, 212-306-1641, mary.chung@amex.com
2006-1257