ProFunds Group, a manager of leveraged and inverse funds, is launching two exchange-traded funds designed to provide magnified exposure to the US treasury market.
The ProShares Ultra 20+ Year Treasury seeks investment results that correspond to twice (200 per cent) the performance of the Barclays Capital 20+ Year US Treasury Index for a single day, excluding fees, expenses and interest income.
The ProShares Ultra 7-10 Year Treasury seeks investment results that correspond to twice (200 per cent) the performance of the Barclays Capital 7-10 Year US Treasury Index for a single day, excluding fees, expenses and interest income.
The ETFs will be listed on NYSE Arca.
“The new ETFs provide magnified exposure to treasury securities and afford potential opportunities to benefit from dips in interest rates,” says Michael L. Sapir, chairman and chief executive of ProShare Advisors, ProShares’ investment adviser. “With the addition of these two ETFs, ProShares offers the largest lineup of leveraged and inverse treasury ETFs.”
Demand for the firm’s inverse treasury ETFs has been strong. The ProShares UltraShort 20+ Year Treasury ETF has attracted more than USD4.6bn in less than two years. Today’s launch of the two leveraged treasury ETFs is in response to investor interest in leveraged long counterparts to the inverse fixed income ETFs, ProShares UltraShort 20+ Year Treasury and ProShares UltraShort 7-10 Year Treasury.
