ProShares Announces Change to ProShares K-1 Free Crude Oil Strategy ETF
Apr 22, 2021
Bethesda, MD – April 22, 2021 – ProShares, a premier provider of ETFs, announced in March that ProShares K-1 Free Crude Oil Strategy ETF (OILK) will change its investment objective and index. Effective after the market closes on May 17, 2021, the Fund will be passively rather than actively managed. The (new) benchmark index for this Fund will be the Bloomberg Commodity Balanced WTI Crude Oil Index (ticker: BCBCLI). Following these changes, the Fund will seek exposure to longer-dated WTI crude oil futures contracts. For more complete information concerning the changes to OILK, please refer to its prospectus supplement.
|Ticker||ProShares ETF Name||Current Objective||New Objective|
|OILK||ProShares K-1 Free Crude Oil Strategy ETF||ProShares K-1 Free Crude Oil Strategy ETF (the “Fund”) seeks to provide total return through actively managed exposure to The West Texas Intermediate crude oil futures markets.||ProShares K-1 Free Crude Oil Strategy ETF (the “Fund”) seeks investment results, before fees and expenses, that track the performance of the Bloomberg Commodity Balanced WTI Crude Oil Index.|
Neither the Fund nor its index are intended to track the performance of the spot price of WTI crude oil,* and therefore the Fund should be expected to perform very differently from the spot price of WTI crude oil.
New Index Description
The Bloomberg Commodity Balanced WTI Crude Oil Index aims to track the performance of three separate contract schedules for WTI crude oil futures, which are reset on a semiannual basis. One third of the index follows a monthly roll schedule that rolls from the current futures contract (which expires one month out) into the following month’s contract; the second third of the index is designated to be in a June contract and follows an annual roll schedule in March of each year; and the remaining third is designated to be in a December contract and follows an annual roll schedule in September of each year
No shareholder action is required related to this notice.
* “Spot” price refers to the price of physical crude oil that can be purchased at port for immediate delivery. The spot price is commonly referred to by the financial press and others but is not generally investable.
Investing involves risk, including the possible loss of principal. ProShares ETFs are generally non-diversified, and each entails certain risks, which may include risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Short positions lose value as security prices increase. Narrowly focused investments typically exhibit higher volatility. Investments in smaller companies typically exhibit higher volatility. Smaller company stocks also may trade at greater spreads or lower trading volumes, and may be less liquid than stocks of larger companies. Please see summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. Read them carefully before investing.
"Bloomberg®" and "Bloomberg Commodity Balanced WTI Crude Oil Index" are trademarks or service marks of Bloomberg Finance L.P. and its affiliates (collectively, "Bloomberg") and have been licensed for use for certain purposes by ProShares. Neither Bloomberg nor UBS Securities LLC and its affiliates (collectively, "UBS") are affiliated with ProShares. ProShares have not been passed on by Bloomberg or UBS as to their legality or suitability. ProShares based on the Bloomberg WTI Crude Oil Subindex are not sponsored, endorsed, sold or promoted by Bloomberg or UBS, and they make no representation regarding the advisability of investing in ProShares. BLOOMBERG AND UBS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES. Neither Bloomberg nor UBS guarantees the timeliness, accurateness, or completeness of any data or information relating to Bloomberg WTI Crude Oil Subindex.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.
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