ProShares Launches First 2x and -2x Gold Miners ETFs
February 13, 2015 at 08:00 AM EST
ProShares, a premier provider of alternative ETFs, today announced the launch of the only ETFs in the United States offering 2x and -2x exposure to gold and silver mining stocks.
The new ProShares ETFs, all of which are listed on NYSE Arca, are:
All objectives are before fees and expenses
“The mining sector is popular with tactical investors,” said Michael L. Sapir, co-founder and CEO of ProShare Advisors LLC, the largest provider of geared ETFs. “We are pleased to offer the only ETFs providing 2x and -2x exposure to the leading gold mining indexes.”
About the Indexes
The NYSE Arca Gold Miners Index is a modified market-capitalization weighted index comprising primarily publicly traded companies involved in mining and producing gold. The index also includes companies involved in mining silver. Companies that derive more significant revenues from silver mining are limited to a 20% weighting when the index is rebalanced.
The Market Vectors Global Junior Gold Miners Index includes companies that generate at least 50% of their revenues from (or, in certain circumstances, have at least 50% of their assets related to) gold mining and/or silver mining or have mining projects with the potential to generate at least 50% of their revenues from gold and/or silver when developed. Such companies may include micro- and small-capitalization companies and foreign issuers. The weight of companies determined to be silver stocks will not exceed 20% of the index at any quarterly rebalance. Between rebalances the weight may exceed 20% due to market appreciation.
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 wide array of alternative ETFs can help you reduce volatility, manage risk and enhance returns.
ProShares has the largest lineup of alternative ETFs in the United States according to Strategic Insight, based on analysis of all the known alternative ETF providers (as defined by Strategic Insight) by their number of funds and assets (as of 1/31/2014).
ProShares is the world’s largest provider of geared (leveraged and inverse) ETFs according to Lipper, based on a worldwide analysis of all known providers of funds in these categories. The analysis covered ETFs and ETNs by the number of funds and assets (as of 6/30/2013).
These Geared (Short or Ultra) ProShares ETFs seek returns that are either 2x or -2x the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, Geared 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 Geared ProShares holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the prospectus.
Investing involves risk, including the possible loss of principal. These ProShares ETFs are non-diversified and entail certain risks, including 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 should lose money when their benchmarks or indexes rise. International investments may involve risks from: geographic concentration, differences in valuation and valuation times, unfavorable fluctuations in currency, differences in generally accepted accounting principles, and from economic or political instability. Investments in smaller companies typically exhibit higher volatility. Smaller company stocks also may trade at greater spreads or lower trading volumes, and may be less liquid than stocks of larger companies. In emerging markets, many risks are heightened, and lower trading volumes may occur. 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 subject to risks faced by the gold and silver mining industry, including risks related to changes in the price of gold and silver. Gold and silver mining companies may also be adversely affected by changing inflation expectations, the availability of alternatives, disruptions in the supply chain, rising production costs, rising regulatory compliance costs, increased environmental regulations, and changes in industrial, government and global consumer demand. Gold and silver mining companies may dramatically outperform or underperform more traditional equity investments.
The "NYSE Arca Gold Miners IndexSM" is a service mark of NYSE or its affiliates ("NYSE"). The "Market VectorsTM Global Junior Gold Miners Index" is the exclusive property of Market Vectors Index Solutions GmbH (“Market Vectors”). Both have been licensed for use by ProShares. Market Vectors has contracted with Structured Solutions AG to maintain and calculate the index. Structured Solutions AG uses its best efforts to ensure that the index is calculated correctly. Irrespective of its obligations towards the Market Vectors, Structured Solutions AG has no obligation to point out errors in the index to third parties. ProShares have not been passed on by these entities or their affiliates as to their legality or suitability. ProShares based on these indexes are not sponsored, endorsed, sold, or promoted by these entities or their affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES 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.