ProFunds launches single inverse ETFs

ProFunds Group has launched a range of single inverse ProShares ETFs in the US, providing exposure to China, US real estate and the US basic materials sector.

The firm’s latest offering comprises the FTSE/Xinhua China 25, the Short Real Estate and the Short Basic Materials funds, listed on NYSE Arca. The inverse funds are designed to return -100% of the daily performance of the underlying index, before fees and expenses. As a result, the funds provide positive returns when the benchmark declines, and negative returns when itrises. The firm says these ETFs may be used by “knowledgeable” investors for short-term periods, to manage risk or seek profit when markets are declining. ProShare Advisers CEO Michael Sapir says: “Our existing dou...