New ProShares S&P 500 Aristocrats ETF Filing In Focus

prosharesProShares has long been a leader in the leverage and inverse ETF market. The company is probably best known for its S&P 500-focused funds—such as SH, SDS and SSO—although it has more than one billion in assets in some of its bond (NYSEARCA:TBT) and small cap products (NYSEARCA:UWM) as well.

Yet while the firm has made its name in these levered products, it is apparently looking to branch out into the ‘regular’ ETF market too. The firm has launched several of these products in the past few months such as a private equity fund (NYSEARCA:PEX) and a merger arbitrage ETF (BATS:MRGR), and has recently put another into the pipeline (also see Coming Soon: Rising Rates ETF).

This proposed ETF looks to continue ProShares’ recent trend into the unlevered market, focusing on domestic stocks. While the filing was just an initial one, and thus some key details were not released such as expense ratio or ticker symbol, we have highlighted a few of the important points that were revealed in the document below:

New ProShares Filing in Focus

The proposed fund looks to be for the S&P 500 Aristocrats ETF, which looks to track, before fees and expenses, the performance of the S&P 500 Dividend Aristocrats ETF. This benchmark seeks to give exposure to S&P 500 companies that have increased dividend payments each year for at least the past 25 years.

In total, the index contains a minimum of 40 stocks in its basket, equally weighting among all of the securities. However, it should be noted that no single sector is allowed to make up more than 30% of the index weight, and that rebalancings are done on a quarterly basis, while annual index reconstruction is done in the January rebalance period.

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