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Products December 9, 2010
ProShares Unveils Alternative ETF
ProShares, a provider of alternative exchange-traded funds (ETFs), has unveiled ProShares RAFI Long/Short (RALS).
Reported by PLANADVISER staff
The ETF, which a news release said is the first dedicated fund that
offers a long/short strategy based on Research Affiliate’s Fundamental
Index (RAFI) methodology, listed on NYSE Arca December 9.
According
to the announcement, the RAFI approach uses fundamental measures of
company size—sales, dividends, cash flow and book value— instead of
security price in selecting and weighting securities. The new ETF seeks
to match the performance of the RAFI US Equity Long/Short Index before
fees and expenses.
The firm said the Index takes long positions in companies with large RAFI weights relative to their capitalization weights and short positions in companies with small RAFI weights relative to their capitalization weights. By allocating an equal dollar amount to its long and short positions, the Index is designed to generate an absolute return over a full market cycle.