ProShares, a premier provider of alternative exchange traded funds (ETFs), announced that the ProShares Credit Suisse 130/30 (NYSE: CSM), the nation’s only 130/30 ETF, has surpassed $100 million in assets.
CSM seeks to track the Credit Suisse 130/30 Large-Cap Index, which was designed by Andrew Lo of AlphaSimplex and Pankaj Patel of Credit Suisse. From its inception (7/13/09) through the end of the last quarter, CSM has outperformed the S&P 500 by 299 basis points.1 (See “About CSM Performance” below for additional return information.)
“Investors are responding to an ETF with an alternative strategy that has outperformed the S&P 500,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares’ investment advisor. “The systematic approach and research behind CSM’s index, the enhanced level of transparency of the fund, and its relatively low cost2 are appealing to investors.”
CSM was the first ETF in the Alpha ProShares category. Alpha ProShares are designed to provide advanced investment strategies in an ETF and represent ProShares’ further expansion within the alternative ETF space. ProShares introduced its second Alpha ProShares ETF, the RAFI® Long/Short (RALS) in December 2010.
About 130/30 Strategies
130/30 strategies are an alternative approach to traditional long-only investing. They aim to benefit by taking advantage of both positive and negative views on securities. A 130/30 portfolio typically holds a 130% long position in securities that are expected to outperform the market and a 30% short position in securities that are expected to underperform the market.
About the Credit Suisse 130/30 Large-Cap Index
The Credit Suisse 130/30 Large-Cap Index uses a robust quantitative model to evaluate stocks and to set its long and short positions. The index was introduced in 2007 by Credit Suisse in collaboration with AlphaSimplex Group, which was founded by Dr. Andrew Lo. Dr. Lo is Chairman and Chief Investment Strategist of AlphaSimplex Group and Harris & Harris Group Professor at the MIT Sloan School of Management. Mr. Patel is Managing Director and Global Head of Quantitative Research at Credit Suisse. The principles underlying this quantitative index are described in Dr. Lo’s and Mr. Patel’s award-winning 2008 paper published in The Journal of Portfolio Management.3
About CSM Performance
From its inception on July 13, 2009, to March 31, 2011, CSM’s market price cumulative total return was 55.29% compared to 52.30% for the S&P 500. Over this period, CSM’s market price total return, annualized since inception, was 29.25% compared to 27.80% for the S&P 500, and for the past 12-months ended March 31, 2011, was 15.89% compared to 15.65% for the S&P 500. From its inception to March 31, 2011, CSM’s NAV total return, annualized since inception, was 29.13%, and for the past 12-months ended March 31, 2011, was 15.87%.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Performance data current to the most recent month-end may be obtained by visiting www.Proshares.com.
ProShares is a premier provider of alternative ETFs, with 121 funds and more than $26 billion in assets. ProShares offers the largest family of geared (leveraged and inverse) ETFs.4 ProShares is part of ProFunds Group, which was founded in 1997 and includes more than $32 billion in mutual fund and ETF assets.5
1 Market conditions that have contributed to this performance
might not continue to exist and performance may not be repeated in the
2 Compared to an average 1.91% expense ratio for 130/30 mutual funds. Based on data from Morningstar® Principia®.
3 Lo, Andrew W., and Patel, Pankaj N., "130/30: The New Long-Only," Journal of Portfolio Management, Winter 2008.
4 Source: Lipper, based on a worldwide analysis of all of the known providers of funds in these categories. The analysis covered ETFs, ETNs and mutual funds by the number of funds and assets as of 6/30/2010.
5 As of April 1, 2011.
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 (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance risks. Short positions lose value as security prices increase. Leverage can increase market exposure and magnify investment risk. These risks can increase volatility and decrease performance. Please see the prospectus for a more complete description of these risks. There is no guarantee any ProShares ETF will achieve its investment objective.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their prospectuses. Read the prospectus(es) carefully before investing. For a ProShares ETF prospectus, visit www.proshares.com and seek advice from your financial adviser or broker/dealer representative. Financial professionals can also call 866-PRO-5125. Read the prospectus(es) carefully before investing.
"Credit Suisse" and "Credit Suisse 130/30 Large-Cap IndexTM," are trademarks of Credit Suisse Securities (USA) LLC or one of its affiliates and have been licensed for use by ProShares. ProShares have not been passed on by Credit Suisse or its affiliates as to their legality or suitability. ProShares are not sponsored, endorsed, sold, or promoted by Credit Suisse or its 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.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with ProShare Advisors.