ProShare Advisors unveiled eight exchange-traded funds designed to provide investors with short or magnified exposure to an index, marking the first time ETFs have built in this capability, said Michael Sapir, CEO. The funds began trading on the American Stock Exchange today.
They are divided into two main categories. One will provide short exposure to four well-known indexes by moving in the opposite direction of the underlying index, enabling investors to hedge against factors such as market events or political risk. The other category is designed to seek daily investment results that are twice the performance of the underlying index. Indexes underlying the funds are the Dow Jones Industrial Average, the S&P 500 index, the Nasdaq 100 index and the S&P MidCap 400 index.
ProShare also hired JPMorgan Worldwide Securities Services to provide accounting, administration, transfer agency and custody services for the eight ETFs.
updated with correction