ProFunds Launch Four International UltraShort ETFs
Source: http://www.indexuniverse.com/sections/newsinfocus/6017-profunds-launch-four-international-ultrashort-etfs.html?Itemid=3&utm_source=straightstocks.com&utm_medium=sidebar&utm_campaign=rssPosted on Thursday, June 18th, 2009 | In Exchange Traded Funds, Market Commentary
ProShares launches four new ultrashort ETFs, each aiming to provide -200 exposure to international indexes.
On the heels of its move into international leveraged waters, ProShares Thursday doubled its lineup of exchange-traded funds providing -200% overseas exposure.
The four new ETFs launching this morning on the NYSE Arca exchange are the:
- ProShares UltraShort MSCI Europe (EPV)
- ProShares UltraShort MSCI Pacific ex-Japan (JPX)
- ProShares UltraShort MSCI Brazil (BZQ)
- ProShares UltraShort MSCI Mexico Investable Market (SMK)
Each will follow their corresponding indexes, taking 2X short positions in their respective benchmarks. They’ll expand the number of UltraShort ETFs that ProShares has on the market tracking MSCI indexes to a total of eight. The other previous launches cover developed international markets through the broad EAFE index, emerging markets as a whole, Japan and China.
Earlier this month, ProShares launched the first of its 200% leveraged international ETF series with four similar funds. (See related article here.)
The new ETFs will each charge an expense ratio of 0.95%. A breakdown of the individual indexes shows the following:
- For EPV, the United Kingdom dominated with about 32% of the underlying constituents as of the end of the first quarter. France was next at 16% followed by Switzerland (13%) and Germany (12%). The rest were in single digits. The underlying benchmark had 489 different companies listed.
- With 146 constituent names, JPX’s benchmark was dominated by BHP Billiton (10.69%). Trailing next were Westpac Banking (5.32%) and Commonwealth Bank (5.10%). The index is dominated by financials, weighted at around 45%. Materials was the second-biggest sector at 17%.
- The benchmark holdings for BZQ are dominated by different share classes of Petrobras, which combined, represented more than 11% of the ETF’s constituent holdings. The same situation occurs with Vale Do Rio Doce, which together leaves about a 6.60% weighting to the company. The leading sectors are: energy (31%), materials (25%) and financials (20%). The index had about 69 different names.
- An even slimmer SMK had a list of about 50 stocks which was heavily weighted to America Movil at more than 31%. Wal-Mart Mexico was next at 8.21%. In terms of sectors, the ETF was led by telecom (43%), consumer staples (21%) and consumer discretionary (13%).
An interesting side note for investors, ProShares’ Web site only provides data of the underlying indexes. Besides the prospectus for each, that’s the most recent detailed information available. And the benchmark data is only through March 31. Daily holdings are listed in totals of swaps held in the underlying index and cash.
Last 5 posts by IndexUniverse Staff
- Will UNL Beat UNG? - November 19th, 2009
- A Real Hedge Fund ETF? - November 17th, 2009
- ProShares’ Positive Tax Surprise? - November 17th, 2009
- Better Than Cash? - November 17th, 2009
- Stoxx Indexes Bought; Company Valued At $900M - November 13th, 2009
 About IndexUniverse Staff (http://indexuniverse.com)
IndexUniverse encompasses the world of indexing and beyond. Our website and related subsites cover product and market developments related to index funds, exchange-traded funds (ETFs), index derivatives (futures / options / swaps), and the sophisticated investment strategies which use these financial tools. Our goal is to provide the industry's best news, columns, research, and features about the dynamic field of index-based investing and trading. Industry professionals, individual investors, business/finance students and academic researchers will find various features targeting their interests and needs. We also provide valuable tools and data to assess markets and investment products, and specialized discussion boards for our registered members to exchange cutting-edge ideas and market views. We aim to be educational, thought-provoking, and most importantly, rigorously independent in our perspective. The development of IndexUniverse was a global effort, originally led by Steven Schoenfeld and Jim Wiandt, supported by John Spence and a diverse team in the U.S., Europe and Latin America, and enhanced by editorial contributors from around the world. The site is now managed solely by Jim Wiandt and the global Index Publications LLC team. The site was originally started by Steven as a data and information complement to his book, Active Index Investing, published by Wiley Finance in July 2004. As he recognized the need and potential for such a resource, in August 2003, Steven partnered with Jim, who as editor of The Journal of Indexes similarly recognized the industry's need for timely, useful and independent information on products and markets. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.