NEWS CENTER Press Releases

ProShares Launches First U.S. Equity ETF Specifically Designed to Outperform in a Rising Rate Environment

BETHESDA, Md. (July 25, 2017) – ProShares, a premier provider of ETFs, announced today the launch of ProShares Equities for Rising Rates ETF (EQRR), the first U.S. equity ETF specifically designed to outperform traditional large-cap indexes, such as the S&P 500, in a rising interest rate environment. The fund is benchmarked to the Nasdaq U.S. Large Cap Equities for Rising Rates Index and is listed on the Nasdaq exchange.

"EQRR is for investors who expect rising interest rates and want to outperform traditional large-cap indexes as rates go up," said Michael L. Sapir, co-founder and CEO of ProShare Advisors, LLC, the advisor to ProShares. "EQRR takes those sectors most positively correlated with interest rates, then within those sectors invests in the companies that have tended to outperform during periods of rising rates."

The fund seeks to track the performance of the Nasdaq U.S. Large Cap Equities for Rising Rates Index. The index methodology starts with the 500 largest listed U.S. stocks and selects the five U.S. large-cap sectors that have most recently demonstrated the highest correlation to weekly changes in 10-year U.S. Treasury yields. It then identifies the top 10 stocks in each sector that have the highest correlation of relative performance— versus 500 of the largest listed U.S. stocks— to changes in the 10-Year yield. Stocks in sectors with a higher correlation to rising rates have a heavier weighting in the index. This process is repeated quarterly to maintain a portfolio of 50 stocks. The resulting portfolio aims to provide relative outperformance compared to traditional large-cap indexes during periods of rising U.S. Treasury interest rates.

About ProShares

ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $27 billion in assets. The company is the leader in strategies such as dividend growth, alternative and geared (leveraged and inverse). ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.

Media Contact:

Tucker Hewes, Hewes Communications, Inc., 212.207.9451, tucker@hewescomm.com

Investor Contact:

ProShares, 866.776.5125, ProShares.com

Jul 25, 2017