(Source: Business Wire)
ProShares, creator and market leader in short and leveraged exchange traded funds, announced the introduction of another innovative exchange traded fund, the nation's first 130/30 ETF. ProShares Credit Suisse 130/30 (Ticker: CSM) will be listed on NYSE Arca today.
The new ETF is the first of a new category of ProShares ETFs: Alpha ProShares. Alpha ProShares are designed to provide advanced investment strategies to investorsin the form of ETFs.
ProShares Credit Suisse 130/30 seeks to track the Credit Suisse 130/30 Large-Cap Index (before fees and expenses). The index was introduced in 2007 by Credit Suisse in collaboration with AlphaSimplex Group.
The index was designed by Dr. Andrew Lo, in collaboration with Mr. Pankaj Patel, CFA. Dr. Lo is Chairman and Chief Scientific Officer of AlphaSimplex Group and Harris & Harris Group Professor at the MIT Sloan School of Management. Mr. Patel is Director of Quantitative Research at Credit Suisse.
Dr. Lo and Mr. Patel described the underlying principles of this quantitative-based index in their award-winning 2008 paper, "130/30: The New Long-Only," in The Journal of Portfolio Management.1
"We believe that this new ETF will be attractive for investors' 130/30 allocations because it combines a rigorous quantitative investment process developed by two renowned experts with the index transparency, low cost and liquidity of an ETF," said Mr. Michael L. Sapir, ProShares Chairman and CEO.
"Working with Pankaj Patel and the team at Credit Suisse, we've developed a 130/30 index which is transparent, investable and passivethe key attributes needed to drive an index-based 130/30 investment strategy," said Professor Lo. Mr. Patel of Credit Suisse added, "The quantitative model behind our 130/30 Large-Cap index is based on extensive, robust research on the real-world factors contributing to stock performance."
About ProShares
ProShares is part of ProFunds Group, the largest manager of short and leveraged funds.2 The group includes 89 ProShares ETFs and 115 ProFunds mutual funds. ProShares, which introduced the first short and leveraged ETFs in 2006, continues to be a leader in launching innovative new productsfor two years in a row, ProShares has led the industry in attracting assets to newly launched ETFs3 and now is the fourth largest manager of ETFs in the nation.4 Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies, with offerings that include funds that seek to magnify or return the inverse of index performance on a daily basis. The group also manages the Canada-based Horizons BetaPro ETFs.
