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Products January 4, 2011
Proshares Unveils Volatility ETFs
ProShares, a provider of alternative exchange-traded funds (ETFs), has launched what its says are the first "Volatility ETFs."
Reported by PLANADVISER staff
According to a news release, the ProShares VIX Short-Term Futures
(VIXY) and VIX Mid-Term Futures (VIXM) ETFs provide exposure to equity
market volatility by seeking to match the performance of their
respective VIX futures indexes, before fees and expenses. Both ETFs are
listed on NYSE Arca.
“Until now, to access volatility, many
investors have considered exchange traded notes (ETNs), which subject
them to the credit risk of the note’s issuer,” said Michael L. Sapir,
Chairman and CEO of ProShare Capital Management, the sponsor of the
funds, in the news release.
VIXY is linked to the performance of the S&P 500 VIX Short-Term Futures Index, which targets a constant, weighted-average term of one month. VIXM is linked to the performance of the S&P 500 VIX Mid-Term Futures Index, which targets a constant, weighted-average term of five months.