ProShares exchange-traded funds provide built-in short or magnified exposure to a variety of well-known indexes, ranging from broad small-, mid-, and large-cap and style indexes to 11 sectors. ProFunds Group today announced that its ProShares family of exchange traded funds [ETFs] passed the $7 billion mark—in just over a year after its launch. ProShares offers the first and only ETFs designed to provide short or magnified exposure to well-known market indexes.
Gaining short exposure to the markets with ProShares ETFs is convenient whereas traditional short selling requires investors to open a margin account, and you can lose more than you invest. In addition, Short ProShares can be used in some retirement accounts where short selling is prohibited.
There are two types of ProShares ETFs with 52 choices now available to investors:
Short & UltraShort ProShares – Hedge against downturns, or seek profit when markets decline, with the only ETFs designed to go up when indexes go down. For example, the Short S&P500 (NYSEARCA:SH) seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the S&P 500® Index.
Ultra ProShares – Get more exposure for your investment dollars with the only ETFs designed to double the daily performance of popular market indexes (before fees and expenses). For example, the Ultra QQQ (NYSEARCA:QLD)seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the NASDAQ-100® Index.
Used prudently, ProShares ETFs can be a welcome addition to your global ETF portfolio and the short ETFs can act like a shock absorber to cushion your portfolio in down and volatile markets.