ProShares Launching +/-2x and +/-3x Communication Services ETFs
BETHESDA, Md.--(BUSINESS WIRE)--Jan 11, 2019--ProShares will launch four new ETFs benchmarked to the S&P Communication Services Select Sector Index next week. The new ETFs (XCOM, UCOM, YCOM and SCOM) will seek daily investment results that correspond to +/- 2x and +/- 3x the daily performance of the index, before fees and expenses. The suite of ETFs will be listed on NYSE Arca.
“ProShares is committed to providing knowledgeable investors with a comprehensive set of tools for tactical investing,” said Ben Fulton, managing director of ProShares’ tactical products business. “To that end, we are particularly excited about adding leveraged and inverse communication services ETFs to our sector suite.”
The S&P Communication Services Select Sector Index covers the new communication services sector, which focuses on the evolution of communication, entertainment and information sharing. The sector brings together certain FAANG stocks, media giants and telecom leaders, among others. While this future-oriented corner of the equity market may be attractive for its long-term growth potential, ProShares leveraged and inverse communication services ETFs offer the opportunity for investors to seek profit from short-term moves—both up and down—as well.
ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $28 billion in assets. The company is the leader in strategies such as 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.
Geared (leveraged or short) ETFs seek returns that are a multiple (e.g., 2x or -2x) the return of a benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their holdings as frequently as daily. For more on risks, please read the prospectus.
Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
Investing involves risk, including the possible loss of principal. Geared ProShares ETFs are non-diversified and each entails certain risks, which may include risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Short ProShares ETFs should lose money when their benchmarks or indexes rise. These funds concentrate their investments in certain sectors. Narrowly focused investments typically exhibit higher volatility. Please see their summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.
Communication services companies may be subject to the potential obsolescence of products and services, increasing competition, increasing costs and capital requirements, pricing pressures, shifting demographics, and federal and state regulations, which can negatively impact profitability. Companies in the communication services industry may be more susceptible to cybersecurity issues than companies in other industries, including hacking, theft of proprietary or consumer information, and disruptions in service.
The “S&P Communication Services Select Sector Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by ProShares. Standard & Poor’s ® and S&P ® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones ® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by ProShares. ProShares have not been passed on by SPDJI or its affiliates as to their legality or suitability. ProShares based on the S&P Communication Services Select Sector Index are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or third party licensors; they make no representation regarding the advisability of investing in ProShares; and they have no liability for any errors, omissions, or interruptions of the S&P Communication Services Select Sector Index . THESE ENTITIES, THEIR AFFILIATES AND THIRD PARTY LICENSORS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses . Read them carefully before investing.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor.
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KEYWORD: UNITED STATES NORTH AMERICA MARYLAND
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
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PUB: 01/11/2019 03:50 PM/DISC: 01/11/2019 03:50 PM