From the April 2007 issue of Research Magazine • Subscribe!

ProShares Introduces Sector ETFs

The old axiom on Wall Street is that money can be made in any kind of market. To that end, Bethesda, Md.-based ProShare Advisors has introduced a second round of 22 bull- and bear-oriented sector ETFs just one week after launching the first wave.

The latest round of ProShares will offer leveraged long and short exposure to Dow Jones U.S. stock sectors such as energy, healthcare and technology. According to the prospectus, the expense ratios are 0.95 percent and all are listed on the American Stock Exchange.

The long-oriented Ultra ETFs are designed to double the upside performance of the indexes they track. Their counterparts, the UltraShort funds, take a bearish approach by using leverage to target returns opposite to their benchmarks' performance.

Including the latest offerings, ProShares now offers a family of 40 ETFs that provide built-in short or magnified exposure to well-known indexes.

"Like the other ProShares, the new Sector ProShares make getting short or magnified exposure as simple as buying an ETF," says ProShare Advisors CEO Michael Sapir. "And, unlike a margin account, you can't lose more than you invest."

Since their debut in June 2006, ProShares have attracted $3 billion in assets. ProShare Advisors is affiliated with ProFunds Group, which offers mutual funds that employ similar leveraged and short strategies.

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Ron DeLegge is the editor of www.etfguide.com.

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