ProShares has filed paperwork with the SEC for a Short Basic Materials ETF (SBM). The ProShares Short Basic Materials (the “Fund”) will seek 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 the inverse of the return of the Dow Jones U.S. Basic MaterialsSM Index (the “Index”) for that period. In periods of higher market volatility, the volatility of the benchmark may be at least as important to the Fund’s return for the period as the return of the benchmark. The Fund is different from most exchange-traded funds in that it seeks inverse returns and only on a daily basis. The Fund also is riskier than similarly benchmarked exchange-traded funds that do not use leverage. Accordingly, the Fund may not be suitable for all investors and should be used only by knowledgeable investors who understand the potential consequences of seeking daily inverse investment results. Shareholders should actively monitor their investments.

Investment Objective

The Fund seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Index. The Fund does not seek to achieve its stated investment objective over a period of time greater than one day.

Related posts:

1. ProShares Set To Begin Trading The Short Basic Materials ETF (SBM) Tomorrow March 18
2. ProShares Launches First Single Inverse ETFs on China, Real Estate and Basic Materials Indexes Expands Nation’s Only Lineup of Single Inverse Equity and Fixed Income ETFs To 14
3. Stull, Stull & Brody Announces Class Action Lawsuit on Behalf of Investors in ProShares UltraShort Basic Materials Fund (“SMN Fund”)
4. ProShares Announces Reverse Share Splits of Nine ETFs
5. ProShares Ultrashort Russell 2000 Fund (SKK) Case Filed by Bernstein Liebhard LLP

SBM, SMN