ProShares, a provider of alternative exchange traded funds (ETFs), has launched the first ETF that provides inverse exposure to US Treasury Inflation-Protected Securities (TIPS).
The ProShares UltraShort TIPS (NYSEArca: TPS) seeks to provide -2x of the daily return of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L), before fees, expenses and interest income. The ETF lists on NYSE Arca today.
“Fuelled by expectations of rising long-term interest rates, our inverse Treasury ProShares have garnered more than USD7 billion since launching less than three years ago,” said Michael L Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares’ investment advisor. “Our new fund, the first inverse TIPS ETF, is a new tool for investors considering hedging against or seeking to benefit from declines in TIPS prices.”
TPS expands the ProShares lineup of geared Treasury ETFs to six. The lineup now includes four funds offering short exposure and two that offer magnified exposure to Barclays Capital US Treasury Indexes.