ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of ProShares Ultra DJ-UBS Natural Gas (NYSE: BOIL) and ProShares UltraShort DJ-UBS Natural Gas (NYSE: KOLD), the first ETFs in the United States providing magnified or inverse exposure to natural gas futures.
ProShares Ultra DJ-UBS Natural Gas seeks to provide 2x the daily performance of the Dow Jones-UBS Natural Gas Subindex, before fees and expenses. ProShares UltraShort DJ-UBS Natural Gas seeks to provide -2x the daily performance of the Dow Jones-UBS Natural Gas Subindex, before fees and expenses. The ETFs list on NYSE Arca today.
"There has been strong demand for geared commodity ETFs, as investors have come to recognize the importance of commodities as part of their alternatives allocation," said Michael L. Sapir, Chairman and CEO of ProShare Capital Management, the sponsor of the funds. "We are pleased to introduce the first geared ETFs designed to help investors manage risk or act on their views on natural gas.”
ProShares’ geared commodity ETFs have garnered more than $2.5 billion in assets since being introduced less than three years ago. The launch of BOIL and KOLD expands ProShares’ lineup of geared commodity ETFs to 10, covering silver, gold, crude oil, broad commodities and now natural gas.
|ProShares||Ticker Symbol||Index/Benchmark||Daily Objective|
|New Commodity ETFs|
|Ultra DJ-UBS Natural Gas||BOIL||Dow Jones-UBS Natural Gas SubindexSM||2x|
|UltraShort DJ-UBS Natural Gas||KOLD||Dow Jones-UBS Natural Gas SubindexSM||-2x|
|Existing Commodity ETFs|
|Ultra Silver||AGQ||Silver Bullion price, London fix||2X|
|UltraShort Silver||ZSL||Silver Bullion price, London fix||-2x|
|Ultra Gold||UGL||Gold Bullion price, London p.m. fix||2x|
|UltraShort Gold||GLL||Gold Bullion price, London p.m. fix||-2x|
|Ultra DJ-UBS Crude Oil||UCO||Dow Jones-UBS Crude Oil SubindexSM||2x|
|UltraShort DJ-UBS Crude Oil||SCO||Dow Jones-UBS Crude Oil SubindexSM||-2x|
|Ultra DJ-UBS Commodity||UCD||Dow Jones-UBS Commodity SubindexSM||2x|
|UltraShort DJ-UBS Commodity||CMD||Dow Jones-UBS Commodity SubindexSM||-2x|
ProShares is a premier provider of alternative ETFs, with 126 funds and more than $26 billion in assets. ProShares offers the largest family of geared (leveraged or inverse) ETFs.1 ProShares is part of ProFunds Group, which was founded in 1997 and includes nearly $30 billion in mutual fund and ETF assets.2
Short or Ultra ProShares ETFs seek returns that are 3x, 2x, -1x, -2x or -3x 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, ProShares’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their holdings consistent with their strategies, as frequently as daily. For more on correlation and other risks, please read the prospectus.
1 Source: Lipper, based on a worldwide analysis of all of the known providers of funds in these categories. The analysis covered ETFs and ETNs by the number of funds and assets (as of 6/30/2011).
2 Assets as of 8/31/2011.
Commodity ProShares ETFs are not investment companies regulated under the Investment Company Act of 1940 and are not afforded its protections. Investing in these ETFs involves a substantial risk of loss. These ETFs may not be suitable for all investors. 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, all of which can increase volatility and decrease performance. Short ProShares should lose money when their benchmarks or indexes rise. There are additional risks 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. For more on correlation, leverage and other risks, please read the prospectus. There is no guarantee any ProShares ETF will achieve its investment objective. These funds may have different tax implications and generate K-1 tax forms.
This information must be accompanied or preceded by a current ProShares Trust II prospectus available here. ProShares Trust II (issuer) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at sec.gov. Alternatively, the issuer will arrange to send you the prospectus if you request it by calling toll-free 866.776.5125, or visit proshares.com.
The “Dow Jones-UBS Commodity IndexesSM” are a joint product of Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC (“CME Indexes”), and UBS Securities LLC (“UBS Securities”). “Dow Jones,®” “DJ,” “Dow Jones Indexes,” “UBS,” “Dow Jones-UBS Commodity Indexes” and the names identifying each of the individual “Dow Jones-UBS Subindexes” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”) and UBS AG (“UBS AG”), as the case may be, have been licensed to CME Indexes and sublicensed to ProShares. ProShares have not been passed on by these entities as to their legality or suitability. ProShares are not sponsored, endorsed, sold or promoted by Dow Jones, UBS AG, UBS Securities, CME Indexes or any of their affiliates. Dow Jones, UBS AG, UBS Securities, CME Indexes and their affiliates 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 the funds' advisor or sponsor.