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ProFunds to Offer

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June 7, 2002 — ProFund Advisors LLC plans to offer a new type of exchange-traded funds that would seek to outperform their benchmark indexes.

The company has filed a registration statement with the Securities and Exchange Commission to introduce the eight funds, which ProFunds said would be the first ETFs “to offer investors leveraged or short exposure” to index benchmarks.

The funds’ bogeys are the the Dow Jones Industrial Average, the Nasdaq 100 Index, the Standard & Poor’s 500 Index and the S&P MidCap 400 Index. Four of the funds are designed to deliver double the returns of the indexes and four are designed to deliver double the inverse of the indexes.

Exchange-traded funds currently available to investors aim only to replicate daily returns of various indexes. ETFs are similar to index mutual funds, but trade throughout the day, like stocks.

ProFunds said it cannot provide more information about the planned offerings until the registration statement is approved.