ProShares Launches First Inverse High Yield Bond ETF


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Expands Lineup of Inverse Bond ETFs to Five

Bethesda, MD, March 22, 2011 — ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of the first ETF that provides inverse exposure to the high yield bond market.

The ProShares Short High Yield (NYSE: SJB) seeks to provide -1x the daily performance of the Markit iBoxx $ Liquid High Yield Index, before fees and expenses. The ETF lists on NYSE Arca today.

"High yield bonds have had a strong rebound since the financial crisis, with indexes reaching all-time highs1 and high yield funds attracting significant inflows over the past two years," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. "For investors who believe that high yield bonds are ripe for a pullback, SJB can be used to help hedge against or to seek to benefit from potential declines."

SJB expands ProShares' popular lineup of inverse bond ETFs to five. ProShares' four existing inverse bond ETFs, which are benchmarked to Treasurys, have garnered more than $7 billion of assets since launching less than three years ago.

ProSharesTicker SymbolIndexDaily Objective*
New Inverse Bond ETF

Short High Yield

SJB

Markit iBoxx $ Liquid High Yield Index

-1x

Existing Inverse Bond ETFs
UltraShort 20+ Year Treasury TBT Barclays Capital 20+ Year
U.S. Treasury Index
-2x
UltraShort 7-10 Year Treasury PST Barclays Capital 7-10 Year
U.S. Treasury Index
-2x
UltraShort TIPS TPS Barclays Capital U.S. Treasury Inflation
Protected Securities (TIPS) Index (Series-L)
-2x
Short 20+ Year Treasury TBF Barclays Capital 20+ Year
U.S. Treasury Index
-1x

*Before fees and expenses.

About ProShares

ProShares is a premier provider of alternative ETFs, with 116 funds and more than $26 billion in assets. ProShares offers the largest family of geared (leveraged and inverse) ETFs.2 ProShares is part of ProFunds Group, which was founded in 1997 and includes more than $32 billion in mutual fund and ETF assets.3

Media contact:

Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, tucker@hewescomm.com

Leveraged and inverse ProShares and ProFunds seek returns that are multiples or inverse multiples (e.g., 2x, -2x) of the return of an index or other benchmark (target) for a single day. Due to the compounding of daily returns, leveraged and inverse ProShares’ and 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 their holdings consistent with their strategies, as frequently as daily, and rebalance if necessary. A rebalancing strategy involves transaction costs and may have tax consequences. For more on correlation, leverage and other risks, please read the ProShares or ProFunds prospectus.

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Mar 22, 2011
 

1 Merrill Lynch's widely followed U.S. High Yield Master II Index and the Markit iBoxx $ Liquid High Yield Index.
2
Source: Lipper, based on a worldwide analysis of all 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 6/30/2010.
3
Assets as of 3/11/2011.