ProShares Launches First Inverse Investment Grade Corporate Bond ETF


< Back to Press Releases
 

Bethesda, MD, March 29, 2011—ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of the first ETF in the United States that provides inverse exposure to the investment grade corporate bond market.

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

"There are signs that investment grade corporate bonds could possibly be richly valued relative to historical levels. Since the financial crisis, investment grade corporate bond indexes have reached record highs,1 and credit spreads have tightened significantly," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. "For investors who believe that investment grade corporates could come under pressure, IGS can be used to help hedge against or to seek to benefit from potential declines."

IGS expands ProShares' popular lineup of inverse bond ETFs to six. ProShares' four inverse Treasury bond ETFs have garnered more than $7 billion of assets since launching less than three years ago. The firm launched its fifth inverse bond fund, ProShares Short High Yield (NYSE: SJB), last week.

ProSharesTicker SymbolIndexDaily Objective*
New Inverse Bond ETF

Short Investment Grade Corporate

IGS

Markit iBoxx $ Liquid Investment Grade Index

-1x

Existing Inverse Bond ETFs

Short High Yield

SJB

Markit iBoxx $ Liquid High Yield Index

-1x

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 117 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.

###

Mar 29, 2011
 

1 Merrill Lynch’s U.S. Corporate Master Index and Markit iBoxx $ Liquid Investment Grade Index.
2 Source: Lipper, based on a worldwide analysis of all of 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.