This news article originally appeared on WealthManagerWeb.com on 3/22/2010.

ProFunds Group has just launched three exchange-traded funds (ETFs) offering single inverse exposure to equity indices on the U.S. basic materials, U.S. real estate and China sectors. The firm already offers 11 single inverse fixed income and equity ETFs.

The new ProShares funds are Short FTSE/Xinhua China 25 (YXI), Short Real Estate (REK) and Short Basic Materials (SBM). They are listed on NYSE Arca.

Inverse ETFs use a variety of derivatives to profit from a decline in the value of an underlying benchmark. They are also known as “short” or “bear” ETFs. The ProShares single inverse ETFs “seek to provide [minus] -100% of the return of an index or benchmark, before fees and expenses, for a single day,” the firm said in a statement.


Michael S. Fischer is a New York-based financial writer and editor.