ProShares has filed paperwork with the for a “ProShares VIX Short-Term Futures ETF.” This new fund is expected to trade under the symbol VIXY, and the estimated amount of all fees and expenses which are anticipated to be incurred by a new investor in Shares of the Fund is 1.05%. The Fund will seek to provide investment results (before fees and expenses) that match the performance of the S&P 500 VIX Short-Term Futures Index. The S&P 500 VIX Short-Term Futures Index utilizes the prices of the two near-term VIX futures months, replicating a position that rolls the nearest month VIX futures to the next month VIX futures on a daily basis in equal fractional amounts. This results in a constant one-month maturity. The index measures the return from a rolling long position in the fi rst and second month VIX futures contracts.
Principal Investment Strategies
In seeking to achieve the Funds’ investment objectives, the Sponsor uses a mathematical approach to investing. Using this approach, the Sponsor determines the type, quantity and mix of investment positions that the Sponsor believes in combination should produce returns consistent with the Funds’ objectives. The Sponsor relies upon a pre-determined model to generate orders that result in repositioning the Funds’ investments in accordance with their respective investment objective.
Each Fund intends to obtain exposure to its Index by investing in VIX futures contracts. Each Fund will also hold cash or cash equivalents such as U.S. Treasury securities or other high credit quality short-term fixed-income or similar securities (such as shares of money market funds, bank deposits, bank money market accounts, certain variable rate-demand notes and collateralized repurchase agreements) that may be used as margin for the futures contracts.
The Sponsor does not invest the assets of the Funds based on its view of the investment merit of a particular investment, nor does it conduct conventional volatility research or analysis, or forecast market movement or trends, in managing the assets of the Funds. The Funds seek to remain fully exposed at all times to the Funds’ underlying benchmark without regard to market conditions, trends or direction.
For the full filing click: HERE
Related ETFs: iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX)