Morningstar | June 24, 2020
Morningstar ETF specialist Neal Kosciulek says though the investment-grade corporate bond market has “traditionally been a safe place for investors,” new issues from “lesser-quality credits have ratched up credit risk in this space.” For investors worried about deteriorating credit quality, he recommends several ETFs designed to dial down credit risk. He features the ProShares S&P Bond ETF (SPXB), which tracks the S&P/MarketAxess Investment Grade Corporate Bond Index and seeks to select the most liquid investment grade bonds from companies in the S&P 500. See SPXB holdings and performance
QLTA standardized performance, as of 6/30/20: one-year 10.34%(NAV)/10.64% (Market Price); three-year 6.19% (NAV)/6.36% (Market Price); five-year 5.51% (NAV)/5.72% (Market Price); since inception (2/14/12) 4.35% (NAV)/4.42% (Market Price). GIGB standardized performance, as of 6/30/20: one-year 10.14% (NAV)/10.59% (Market Price); since-inception (6/6/17) 6.30% (NAV)/6.50% (Market Price). Past performance does not guarantee future results.
Information on QLTA and GIGB is provided strictly for illustrative purposes and should not be deemed an offer to sell or a solicitation of an offer to buy shares of any ETFs other than SPXB, that are described in this article.
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Geared (leveraged or short) ProShares ETFs seek returns that are a multiple of (e.g., 2x or -2x) the return of a benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, holding periods of greater than one day can result in returns that are significantly different than the target return and ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their holdings as frequently as daily. Investors should consult the prospectus for further details on the calculation of the returns and the risks associated with investing in this product.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Market price returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. ET (when NAV is normally determined for most funds) and do not represent the returns you would receive if you traded shares at other times. Your brokerage commissions will reduce returns. Current performance may be lower or higher than the performance quoted. For standardized returns and performance data current to the most recent month end, see Performance (Strategic / Leveraged and Inverse).
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