ProShares Teams Up With KBW to Launch Inverse, Leveraged Regional Bank ETFs
Friday, April 23rd, 2010Michael Johnston submits:
ProShares continues to be one of the most active ETF issuers of 2010, announcing the launch on Thursday of the first inverse and leveraged ETFs offering exposure to regional banks. The Ultra KBW Regional Banking (KRU) will seek daily returns equal to 200% of the return on the KBW Regional Banking Index, while the Short KBW Regional Banking (KRS) will seek to provide -100% of the return on the same benchmark. The index to which the new ETFs is linked is currently tracked by the SPDR KBW Regional Banking ETF, the largest and most heavily-traded regional bank ETF. This benchmark is an equal-weighted index that consists of about 50 regional banks.
KRU and KRS join a number of existing leveraged and inverse financial ETFs in the ProShares lineup. The Short Financials (SEF), Ultra Financials (UYG), and UltraShort Financials (SKF) are all linked to the more broad-based Dow Jones U.S. Financials Index, a benchmark with a tilt towards big Wall Street banks. “We’re pleased to provide investors with ProShares ETFs on the regional banking sector,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares’ investment advisor. “Many investors follow regional banking stocks, and these ETFs provide them with additional tools to act on their views.”
