ProShares Set To Begin Trading The ProShares Ultra MSCI Brazil ETF (UBR) Tomorrow April 29
ProShares is set to begin trading the “ProShares Ultra MSCI Brazil ETF” (UBR) tomorrow April 29. The Fund seeks investment results for a single day only, not for longer periods. This means that the return of the Fund for a period longer than a single trading day will be the result of each day’s returns compounded over the period, which will very likely differ from twice (200%) the return of the MSCI Brazil Index® (the “Index”) for that period. iShares currently has a non leveraged ETF based on the MSCI Brazil Index the “MSCI Brazil Index Fund” which trades under the symbol (EWZ).
Annual Fund Operating Expenses: .95%
Principal Investment Strategies
Because the value of the Index is not computed as of the close of the U.S. securities markets due to differences in trading hours between U.S. and foreign markets, correlation to the Index will be measured by comparing the daily change in the Fund’s net asset value per share to the performance of one or more U.S. exchange traded securities or instruments that reflect the values of the securities underlying the Index as of the close of the U.S. securities markets.
The Fund invests in equity securities and derivatives that ProShare Advisors believes, in combination, should have similar daily performance characteristics as twice (200%) the daily return of the Index. The Index is a free-float-adjusted market capitalization-weighted index that is designed to measure the equity market performance by targeting approximately 85% of the Brazilian market. The Index is divided into large- and mid-cap segments and targets approximately 85% of free float-adjusted market capitalization of the region. As of March 31, 2010, the Index included companies with capitalizations between $620 million and $62.4 billion. The average capitalization of the companies comprising the Index was approximately $7.1 billion. The Index is published under the Bloomberg ticker symbol “MXBR.” Assets of the Fund not invested in equity securities or derivatives will typically be held in money market instruments.
For the full prospectus click: HERE
Bloomberg quotes Octavio de Barros, chief economist at Banco Bradesco SA. as projecting, “Brazil’s economy will grow 6.4 percent to 7 percent this year as the country’s output gets “close to overheating,” The Wall Street Journal is echoing this statement saying, “Elation over Brazil’s fast recovery from the global economic downturn has shifted to something more ominous: Concern that the giant South American economy is starting to overheat.”