ProShares Launches Groundbreaking Suite of Dynamic Buffer ETFs

Products allow investors to participate in flagship U.S. stock indexes, with a patent-pending approach that adapts each day to expected volatility. 

BETHESDA, Md. – ProShares, a premier provider of ETFs, today announced the launch of three groundbreaking ETFs based on an innovative, patent-pending methodology: 

• ProShares S&P 500 Dynamic Buffer ETF (FB) 

• ProShares Nasdaq-100 Dynamic Buffer ETF (QB) 

• ProShares Russell 2000 Dynamic Buffer ETF (RB) 

Each of these new Dynamic Buffer ETFs allow investors to capture gains on days the underlying index rises, up to a cap, while targeting protection against the first 1% to as much as 5% of losses on days the index falls. 

The downside protection—or buffer—that these ETFs seek adjusts automatically to target greater protection as expected volatility rises and less protection when expected volatility falls. Both the potential protection of the buffer and the upside participation cap adjust proportionally—the higher the expected volatility, the larger the buffer and the higher the cap. 

"We believe our first-of-their-kind Dynamic Buffer ETFs will be highly attractive to the many investors seeking equity market exposure who are concerned about drawdowns, but find that other strategies, like conventional buffer funds, tend to be complex and restrictive," said ProShares CEO Michael L. Sapir. "We feel confident that the dynamic protection afforded by these new funds will allow investors to rest easier at night and make them more likely to include equity exposure in their portfolios, even during market volatility—which is often the worst time to exit." 

Buffer ETFs have grown to $65 billion in assets under management.¹ Certain attributes of existing buffer ETFs have limited their appeal to many investors since, unless they are bought at the start of an extended fixed period (often as long as a year) and held until the end of that period, they can provide unexpected outcomes. ProShares’ Dynamic Buffer ETFs avoid this pitfall by not requiring holding for a lengthy period to obtain the benefit of buffer protection. This represents a notable breakthrough—and a break from past limitations of this fund category.  

About ProShares 

ProShares has been at the forefront of the ETF revolution since 2006. ProShares manages over $80 billion in assets and offers one of the largest lineups of ETFs. The company is a leader in strategies such as crypto-linked, dividend growth, interest rate hedged bond and geared (leveraged and inverse) ETF investing. ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.