ProShares, a premier provider of alternative ETFs, today launched two funds that provide pure exposure to the credit component of the high yield bond market uncoupled from the interest rate component. ProShares CDS North American HY Credit ETF (TYTE) and ProShares CDS Short North American HY Credit ETF (WYDE) are listed on the BATS exchange.

“TYTE and WYDE have a variety of uses in sophisticated portfolios,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC. “For instance, WYDE can be used to hedge against the credit risk in high yield bonds. With TYTE, investors can obtain exposure to the high yield bond market without the risk associated with rising interest rates.”

While a wide selection of ETFs providing pure exposure to corporate credit have long been available in Europe, TYTE and WYDE are the first launched in the United States.

About TYTE and WYDE

TYTE and WYDE get pure exposure to changes in credit spreads by investing in index-based credit default swaps (CDS), instruments that reflect the market’s view of a bond issuer’s credit quality. The funds’ exposure is not leveraged.

The CDS market is generally viewed as the most efficient and liquid market for protection against corporate bond defaults. With more than $8 billion in average daily trading volume, the market for high yield CDS has been more liquid than the high yield bond market itself. The volatility of the high yield CDS market has been lower than equities and comparable to the high yield bond market.* CDS transactions are cleared through a central clearinghouse.

About ProShares

ProShares offers the nation’s largest lineup of alternative ETFs. We help investors to go beyond the limitations of conventional investing and face today’s market challenges. ProShares helps investors build better portfolios by providing access to alternative investments delivered with the liquidity, transparency and cost effectiveness of ETFs. Our lineup of over 145 alternative ETFs can help you reduce volatility, manage risk and enhance returns.

*Volatility (measured by standard deviation) for MARKIT CDX.NA.HY 5-year TOTAL RETURN INDEX, a benchmark for the high yield CDS market, has from its 2007 inception through June 30, 2014 ranged from 6% to 14% compared to 4% to 16% for the Barclays U.S. Corporate High Yield Index and 11% to 46% for the S&P 500®. Average daily volume for CDX.HY was $8 billion for the two-year period through June 30, 2014. This was more liquid than the comparable high yield bond market activity levels of $6 billion.

Investing involves risk, including the possible loss of principal. ProShares ETFs are generally non-diversified and each entails certain risks, including risks associated with the use of derivatives (swap agreements, futures contracts and similar instruments), leverage and market price variance, all of which can increase volatility and decrease performance. 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.

These ETFs are actively managed and there is no guarantee investments selected and strategies employed will achieve the intended results. Active management may also increase transaction costs. Risks related to credit default swaps (“CDS”) may include lack of an active market and difficulty in valuation. Because these ETFs are exposed to high yield credit, there may be greater levels of credit, liquidity and valuation risk than for higher rated instruments. Short ETFs generally lose value as the underlying credit market improves. Investors should actively manage and monitor their investments. These ETFs may not be suitable for all investors.

These ETFs participate in BATS Global Market’s Competitive Liquidity Provider (“CLP”) Program. Participation in the BATS CLP Program (http://www.batstrading.com/listings/market_maker/etp/) may have potential impacts on the price and liquidity of the security. In particular, there could be adverse impacts on a purchaser’s sale of an ETF that leaves the program. ProShares pays a fee for each ETF participating in the BATS CLP Program. Payment of a CLP Fee is intended to generate more quotes and trading than might otherwise exist absent this payment. Learn more by visiting http://www.proshares.com/resources/bats_clp_program.html.

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.