ProShares, the world’s largest sponsor of leveraged and inverse ETFs, announced today the launch of the first and only daily 3x leveraged and inverse crude oil ETFs. ProShares UltraPro 3x Crude Oil ETF (OILU) and ProShares UltraPro 3x Short Crude Oil ETF (OILD) are benchmarked to the Bloomberg WTI Crude Oil SubindexSM. OILU and OILD are listed on NYSE Arca.
“With OILU and OILD, investors can, for the first time, obtain daily 3x and -3x exposure to crude oil with the liquidity, transparency and cost-effectiveness of ETFs,” said Michael L. Sapir, chief executive officer of ProShare Capital Management, the ETFs’ sponsor. “We are pleased to provide these additional investment choices to knowledgeable investors who pursue tactical strategies.”
ProShares is also the only sponsor in the U.S. to offer 2x and -2x crude oil ETFs. The full suite of leverage and inverse crude oil ETFs includes:
|OILU||3x||Bloomberg WTI Crude Oil Subindex|
|OILD||-3x||Bloomberg WTI Crude Oil Subindex|
Bloomberg WTI Crude Oil Subindex
|SCO||-2x||Bloomberg WTI Crude Oil Subindex|
ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $26 billion in assets. The company is the leader in strategies such as dividend growth, alternative and geared (leveraged and inverse). ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.
ProShares is the leader in dividend growth, alternative and geared (leveraged and inverse) strategies. Source: ProShares, Strategic Insight and Lipper, based on number of funds and/or assets, as of December 31, 2016.
These ProShares ETFs seek a return that is -3x or 3x the return of the index (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, the funds’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the prospectus.
Neither these ETFs nor ProShares Trust II are investment companies regulated under the Investment Company Act of 1940 and neither are afforded its protections. Investing in ETFs involves a substantial risk of loss. Investing involves risk, including the possible loss of principal. These ProShares are non-diversified and entail certain risks, including risk associated with the use of derivatives (futures contracts, swap agreements and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. There are additional risks related to commodity investments due to large institutional purchases or sales, and natural and technological factors such as severe weather, unusual climate change, and development and depletions of alternative resources. Certain derivative instruments will subject the fund to counterparty risk and credit risk, which could result in significant losses for a fund. Short ProShares should lose money when their benchmarks or indexes rise. Please see the prospectus for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective. These funds generate a K-1 tax form.
This information must be accompanied or preceded by a current ProShares Trust II prospectus (http://www.proshares.com/funds/trust_ii_prospectuses.html).ProShares Trust II (the issuer) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at sec.gov. Alternatively, the issuer will arrange to send you the prospectus if you request it by calling 866.776.5125, or visit ProShares.com.
"Bloomberg®" and "Bloomberg WTI Crude Oil SubindexSM" are trademarks or service marks of Bloomberg Finance L.P. and its affiliates (collectively, "Bloomberg") and have been licensed for use for certain purposes by ProShares. Neither Bloomberg nor UBS Securities LLC and its affiliates (collectively, "UBS") are affiliated with ProShares. ProShares have not been passed on by Bloomberg or UBS as to their legality or suitability. ProShares based on the Bloomberg WTI Crude Oil Subindex are not sponsored, endorsed, sold or promoted by Bloomberg or UBS, and they make no representation regarding the advisability of investing in ProShares. BLOOMBERG AND UBS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES. Neither Bloomberg nor UBS guarantees the timeliness, accurateness, or completeness of any data or information relating to Bloomberg WTI Crude Oil Subindex.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' sponsor.
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Tucker Hewes, 212-207-9451