ProShares, a premier provider of alternative ETFs, today launched the Short Term USD Emerging Markets Bond ETF (EMSH), the first short term emerging markets bond ETF in the United States. The ETF is designed to offer attractive yield potential with reduced interest rate sensitivity.
“Investors concerned about rising interest rates have been flooding into short term bond ETFs,” said Michael Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares’ investment advisor. “We are pleased to introduce the nation’s first short term emerging markets bond ETF, which offers exposure to this attractive-yielding asset class while limiting the impact of rising interest rates.”
The ETF tracks the DBIQ Short Duration Emerging Market Bond IndexSM, which is composed of a diversified portfolio of U.S. dollar-denominated emerging markets bonds with a weighted average maturity of three years or less. The index currently includes bonds from 19 countries issued by sovereign governments, other government entities and agencies, as well as corporations that have significant government ownership. A country’s weight in the index is capped at 10%. Bonds must have a minimum $500 million outstanding issuance to be eligible.
Offering the nation’s largest lineup of alternative ETFs, ProShares helps investors to go beyond the limitations of conventional investing and face today’s market challenges. Each ProShares ETF provides access to an alternative investment strategy delivered with the liquidity, transparency and cost-effectiveness of an ETF. ProShares’ lineup of 144 ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged and inverse), and Inflation and Volatility ETFs.
ProShares has the largest lineup of alternative ETFs in the United States, according to Financial Research Corporation (“FRC”), based on an analysis of all the known alternative ETF providers (as defined by FRC) by their number of funds and assets (as of 3/31/2013).
Investing involves risk, including the possible loss of principal. There is no guarantee any ProShares ETF will achieve its investment objective.
Bonds will decrease in value as interest rates rise. High yield bonds may involve greater levels of credit, liquidity and valuation risk than for higher-rated instruments. Narrowly focused investments typically exhibit higher volatility. International investments may also involve risk from geographic concentration, differences in generally accepted accounting principles, and from economic or political instability. In emerging markets, all these risks are heightened, and lower trading volumes may occur. A decline in the value of a country’s currency could adversely affect the ability of an issuer to pay principal and interest on a bond. Investments in the debt of sub-sovereigns (including agency-issued securities) and quasi-sovereigns (that have significant government ownership) may or may not be issued by or guaranteed as to principal and interest by a governmental authority.
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. Obtain them from your financial advisor or broker/dealer representative or visit ProShares.com.
“Deutsche Bank” and “DBIQ Short Duration Emerging Market Bond IndexSM” are service marks of Deutsche Bank AG and have been licensed for use for certain purposes by ProShares. ProShares have not been passed on by Deutsche Bank AG as to their legality or suitability. ProShares based on the DBIQ Short Duration Emerging Market Bond Index are not sponsored, endorsed, sold or promoted by Deutsche Bank AG, and Deutsche Bank makes no representation, express or implied, regarding the advisability of investing in ProShares. DEUTSCHE BANK AG AND ITS 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.