Nine More Etfs Emerge

 Feb 03, 2012 |

 

The second wave of product launches for 2012 contains a pair of "breakeven inflation rate" ETFs, a small-cap emerging Asia-Pacific fund, two low volatility ETFs targeting emerging and developed international markets, new ETFs targeting the regional emerging markets of Latin America and EMEA, an actively-managed fund-of-funds with a global rotation strategy, and a German sovereign debt fund.

ProShares 30 Year TIPS/TSY Spread (RINF) listed on 1/12/12 with an expense ratio capped at 0.75% (RINF overview).  The underlying Dow Jones Credit Suisse 30-Year Inflation Breakeven Index tracks the performance of long positions in 30-year Treasury Inflation Protected Securities (TIPS) and duration-adjusted short positions in U.S. Treasury bonds of the closest maturity.  The difference in yield (or "spread") between these bonds (Treasury yield minus TIPS yield) is commonly referred to as a "breakeven rate of inflation" and is considered to be a measure of the market's expectations for inflation.  The index is designed to appreciate as the breakeven rate of inflation increases.  Additional information about the index is available at Dow Jones Indexes.  RINF is implementing this strategy with a combination of swaps and 30-year U.S. Treasury securities.

ProShares Short 30 Year TIPS/TSY Spread (FINF) listed on 1/12/12 with an expense ratio capped at 0.75% (FINF overview).  The new ETF seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the Dow Jones Credit Suisse 30-Year Inflation Breakeven Index.  See the description of RINF above for additional information on the underlying index.  FINF is implementing this strategy with a combination of swaps and 30-year U.S.


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