ProFunds launches single inverse ETFs

ProFunds Group has launched a range of single inverse ProShares ETFs in the US, providing exposure to China, US real estate and the US basic materials sector.

The firm’s latest offering comprises the FTSE/Xinhua China 25, the Short Real Estate and the Short Basic Materials funds, listed on NYSE Arca.

The inverse funds are designed to return -100% of the daily performance of the underlying index, before fees and expenses.

As a result, the funds provide positive returns when the benchmark declines, and negative returns when itrises.

The firm says these ETFs may be used by “knowledgeable” investors for short-term periods, to manage risk or seek profit when markets are declining.

ProShare Advisers CEO Michael Sapir says: “Our existing double inverse ETFs based on these indexes are popular, but some prefer the lower volatility of single inverse exposure.”

The launch brings the firm’s offering of single inverse equity and fixed income ETFs to 14.