ProShares Launches First Short and First Leveraged Telecom ETFs
March 27 2008 - 9:49AM
Business Wire
Telecom stocks make up one of the market's most dynamic and
volatile sectors, driven by rapidly changing technologies, the
rapid spread of wireless communication and the convergence of
communication, the internet and consumer entertainment. Now
investors can easily get short or magnified exposure to this
sector�and enjoy the benefits of ETF investing�with two new ETFs
from ProShares. ProFunds Group, which manages more than 80% of the
nation�s short and leveraged fund assets,1 today introduces two new
ProShares ETFs: Ultra and UltraShort Telecommunications ProShares,
trading on the American Stock Exchange�. These ETFs combine the
convenience and trading flexibility of ETFs with the potential
benefits of magnified or short exposure to the telecom sector. The
ETFs, which are priced and traded throughout market hours, can be
used in a variety of ways, including: To potentially profit from
sector downturns with short telecom exposure To magnify the impact
of your investment dollar by seeking double daily index performance
(before fees and expenses) To easily adjust overall portfolio
exposure to the telecom sector To execute sector rotation
strategies "This year�s decline in the broad market may drive many
investors to sector strategies to find pockets of opportunity,�
said Michael Sapir, ProFunds Group Chairman and CEO. �With Ultra
Sector and UltraShort Sector ProShares covering 12 sectors and
industries, we now offer sector investors the opportunity to easily
get magnified exposure or short exposure to any area of the
market.� Ultra Telecommunications ProShares (LTL) for magnified
market exposure Ultra Telecommunications ProShares provide you with
twice the market exposure as an ordinary telecommunications ETF for
the same amount of cash. The ProShares ETF is designed to double
the daily performance of its benchmark, the Dow Jones U.S. Select
Telecommunications IndexSM (DJSTEL). That means on days when the
index rises by 1%, Ultra Telecommunications ProShares would rise by
2%, before fees and expenses. Note that the fund�s magnified
exposure applies to losses as well as gains: Its net asset value
should lose approximately twice the same amount, on a percentage
basis, as any decrease in the daily performance of the index.
UltraShort Telecommunications ProShares (TLL) to hedge or profit
from downturns You can seek profit from a market downturn or seek
to hedge existing positions with UltraShort Telecommunications
ProShares�the first short telecommunications ETF. The ProShares ETF
is designed to double the daily inverse performance of its
benchmark, Dow Jones U.S. Select Telecommunications IndexSM
(DJSTEL). So on days when the index goes down by 1%, the fund
should increase by 2%, before fees and expenses, and when the index
rises, the fund should fall. About ProShares and ProFunds Group
ProShares, launched in June 2006, is now the nation�s fifth-largest
ETF provider.2 It is part of the $23 billion ProFunds Group, the
nation�s largest manager of short and leveraged funds.3 ProFunds
Group also manages more than 100 ProFunds mutual funds. Since 1997,
ProFunds has provided mutual fund investors with easier access to
sophisticated investment strategies, with offerings that include
mutual funds that seek to magnify daily index performance and funds
that seek to increase in value when markets decline. ProFunds Group
describes the portfolio managers common to ProFund Advisors LLC,
advisor to ProFunds mutual funds, and ProShare Advisors LLC,
advisor to ProShares ETFs. JPMorgan Worldwide Securities Services
provides a full range of ETF services to ProShares including fund
accounting and administration, transfer agency and custody. All
investing involves risk, including the possible loss of principal.
Investing in Ultra Telecommunications ProShares and UltraShort
Telecommunications ProShares involves certain risks, specifically,
market, correlation, credit, liquidity, aggressive investment
technique, non-diversification, repurchase agreement, and inverse
correlation risk in the UltraShort Telecommunications ProShares.
These funds do not constitute a complete investment program and
they may not be suitable for all investors. Carefully consider the
investment objectives, risks, and charges and expenses of ProShares
and ProFunds before investing. This and other information can be
found in their prospectuses. Read the prospectus(es) carefully
before investing. For a ProShares ETF prospectus, visit
www.proshares.com and seek advice from your financial adviser or
broker/dealer representative. Financial professionals can also call
866-PRO-5125. For a ProFunds mutual funds prospectus, call
888-PRO-FNDS (individual investors) or 888-PRO-5717 (financial
professionals) or visit www.profunds.com. Read the prospectus(es)
carefully before investing. ProFunds Distributors, Inc., is
distributor for ProFunds mutual funds. ProShares ETFs are
distributed by SEI Investments Distribution Co., which is not
affiliated with any ProFunds Group affiliate. �Dow Jones�,� �Dow
Jones U.S. Sector Indexes,� �Dow Jones Select Sector Indexes� and
�Dow Jones U.S. Select Telecommunications Index� are service marks
of Dow Jones & Company, Inc. Dow Jones U.S. Sector Indexes have
been licensed by Dow Jones & Company, Inc., for use by
ProShares. ProShares have not been passed on by Dow Jones &
Company, Inc., or its affiliates as to their legality or
suitability. ProShares are not sponsored, endorsed, sold or
promoted by Dow Jones & Company, Inc., or its affiliates, and
they make no representation regarding the advisability of investing
in these products. DOW JONES & COMPANY, INC., AND ITS
AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO
PROSHARES. 1 Based on ProFunds Group analysis of short and
leveraged mutual funds and ETF providers� average daily assets as
of February 2008. 2 Based on Bloomberg analysis of February 2008
average daily assets for all ETF providers. 3 Based on an analysis
by FRC of the largest providers of funds in these categories. The
analysis covered ETFs and mutual funds by the number of funds and
assets (as of October 2007).
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