ProShares Expands ETF Lineup
June 22, 2009

SAN DIEGO (ETFguide.com) – ProShares has just introduced four leveraged ETFs designed to increase in value when stocks fall in Europe, the Pacific Ex-Japan region, Brazil and Mexico.

“ProShares now offers a large selection of 14 ETFs that offer short or leveraged exposure to a variety of regions and countries,” said Michael L. Sapir, ProFunds Group Chairman and CEO. “With this broad line-up, investors can make tactical shifts as conditions change in markets around the world.”

Here's a quick summary of the new ProShares ETFs along with their ticker symbols:

--ProShares UltraShort MSCI Europe (NYSEArca: EPV)
--ProShares UltraShort MSCI Pacific ex-Japan (NYSEArca: JPX)
--ProShares UltraShort MSCI Brazil (NYSEArca: BZQ)
--ProShares UltaShort MSCI Mexico (NYSEArca: SMK)

According to the prospectus, the funds listed above will charge annual expenses of 0.95%.

Self-regulatory bodies like FINRA have called for greater oversight on leveraged and inverse performing ETFs.

In a June notice, FINRA said, “Training about leveraged and inverse ETFs should emphasize the need to understand and consider the risks associated with such products, including the investor’s time horizons, and the impact of time and volatility on the fund’s performance.”

Certain ETF providers have already moved to increase product disclosures and other safety nets.

Direxion Shares recently changed the name of its entire lineup of leveraged and short ETFs to reflect the word “Daily.” This move was done to help investors clearly understand that Direxion Shares attempt to deliver daily leveraged and inverse returns of their underlying indexes.

The first series of leveraged and short ETFs in the U.S. market were originally introduced in mid-2006. According to ETFguide.com’s online database, there are now 79 inverse or short ETFs and 57 long leveraged ETFs.

Including the newly launched ETFs, ProShare Advisors, LLC now manages 84 ETFs with combined assets of $26.24 billion. The firm also manages 115 leveraged and short mutual funds known as the “ProFunds.”