Barbells or Steroids (Part 2)?

By March 21, 2007ETF Strategy

$4 billion in assets… that’s what the ProFunds family of exchange traded funds (ETFs) reported in just 9 months of existence. ProShares (as they are known) currently offers the only ETFS that can short (go against) the market as well as double the exposure (2x) of a popular index.

We started with the steroid-induced SSO for seeking twice the S&P 500. Conversely, SH was designed to give one the inverse of the S&P 500. Similarly, if you wanted to double your exposure to the Nasdaq 100, there’s QLD, and if you want to seek the inverse of the Nasdaq 100, there’s QID.

ProShares Advisors added some juice to their energy drinks this week with the launching of 12 new exchange traded funds (ETFs). The ETFs carry a hefty 0.95% expense ratio, yet the magnified short and long exposure to Russell benchmarks are capturing the attention of bulls and bears.

Six of the new ultras provide a return that seeks double of what the market brings in, while the other six ultra-short ETFs provide double the inverse of what the market returns. (Pass the Tylenol Extra Strength if you’re on the wrong side!)

·                     Ultra Russell 1000 Value (UVG)

·                     Ultra Russell 1000 Growth (UKF)

·                     Ultra Russell MidCap Value (UVU)

·                     Ultra Russell MidCap Growth (UKW)

·                     Ultra Russell 2000 Value (UVT)

·                     Ultra Russell 2000 Growth (UKK)

·                     UltraShort Russell 1000 Value (SJF)

·                     UltraShort Russell 1000 Growth (SFK)

·                     UltraShort Russell MidCap Value (SJL)

·                     UltraShort Russell MidCap Growth (SDK)

Disclosure statement: Some of Pacific Park’s investment clients may hold positions in any of the investments mentioned above.

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