BETHESDA, Md.--(EON: Enhanced Online News)--ProShares announced today that it has filed a registration statement with the Securities and Exchange Commission to launch two new funds that will track the Bloomberg WTI Crude Oil SubindexSM:
- ProShares UltraPro Bloomberg Crude Oil, which will seek a return that is three times (3x) the daily performance of the index
- ProShares UltraPro Short Bloomberg Crude Oil, which will seek a return that is three times the inverse (-3x) of the daily performance of the index
ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $27 billion in assets. The company is the leader in strategies such as dividend growth, alternative and geared (leveraged and inverse). ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.
These ProShares ETFs seek a return that is -3x or 3x the return of the index (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, the funds’ 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 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. ProShares are non-diversified and entail certain risks, including risk associated with the use of derivatives (futures contracts, swap agreements and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Short ProShares should lose value when their market indexes or benchmarks rise—a result that is opposite from traditional ETFs. There are additional risks related to commodity investments due to large institutional purchases or sales, and natural and technological factors such as severe weather, unusual climate change, and development and depletions of alternative resources. Certain derivative instruments will subject the fund to counterparty risk and credit risk, which could result in significant losses for a fund. Please see the prospectus for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.
ProShares Trust II is a commodity pool as defined in the Commodity Exchange Act and the applicable regulations of the CFTC. ProShare Capital Management LLC is the Trust Sponsor and commodity pool operator (CPO). The Sponsor is registered as a CPO with the CFTC, and is a member of the NFA. Neither these ETFs nor ProShares Trust II are investment companies regulated under the Investment Company Act of 1940 and neither are afforded its protections. Investing in ETFs involves a substantial risk of loss. These funds generate a K-1 tax form.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. Information in the registration statement will be amended or completed. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
"Bloomberg®" and "Bloomberg WTI Crude Oil SubindexSM" are trademarks or service marks of Bloomberg Finance L.P. and its affiliates (collectively, "Bloomberg") and have been licensed for use for certain purposes by ProShares. Neither Bloomberg nor UBS Securities LLC and its affiliates (collectively, "UBS") are affiliated with ProShares. ProShares have not been passed on by Bloomberg or UBS as to their legality or suitability. ProShares based on the Bloomberg WTI Crude Oil Subindex are not sponsored, endorsed, sold or promoted by Bloomberg or UBS, and they make no representation regarding the advisability of investing in ProShares. BLOOMBERG AND UBS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES. Neither Bloomberg nor UBS guarantees the timeliness, accurateness, or completeness of any data or information relating to Bloomberg WTI Crude Oil Subindex.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' sponsor.