ProShares' New 'Flavored' and Leveraged ETFs

ProShares launched six new ETFs, bringing their total number of funds to 18. More sector-focused ETFs are set to launch this week. The six new funds are tied to small-cap indexes from the Russell 2000 and the S&P SmallCap 600.

The new ProShares ETFs allow investors to magnify their returns through leverage, or profit when small-cap stocks fall, according to John Spence of MarketWatch.com.

There is an original twist on these funds, with three "flavors" of ETFs based on each index. The "ultra" seeks to double the daily return of the index, regardless if it rises or falls. The leveraged strategy can provide a 4% return if the market rises 2% , and will lose 4% if the market falls 2%. The "short" gives the inverse daily return of the index. The "ultra short" gives double the opposite of the market return. These are "bearish" ETFs and be aware losses would be magnified if the market rose.

* ProShares Ultra SmallCap 600 (SAA)
* ProShares Ultra Russell 2000 (UWM)
* ProShares Short SmallCap600 (SBB)
* ProShares Short Russell 2000 (RWM)
* ProShares Ultra Short SmallCap 600 (SDD)
* ProShares Ultra Short Russell 2000 (TWM)

These funds are meant for institutional investors, sophisticated individuals and hedge or pension funds.