ETF Trends
ETF Trends

The first investment grade corporate bond exchange traded fund (ETF) launched from ProShares.

The ProShares Short Investment Grade Corporate (NYSE: IGS) seeks to provide -1x the daily performance of the Markit iBoxx $ Liquid Investment Grade Index, before fees and expenses, according to the press release. [New ETFs: Corporate Bonds and Dividends.]

The fund uses swaps tied to the inverse performance of the iShares iBoxx $ Investment Grade Corporate Bond (NYSEArca: LQD).  The expense ratio is 0.95%.  Investors And The Corporate Bond Love Affair.]

This launch comes on the heels of its launch of the ProShares Short High Yield (NYSEArca: SJB) fund, which launched last week.  this fund seeks to provide inverse exposure to the corporate junk bond market.

Inverse ETFs such as this are meant to be monitored daily and should be actively traded. They are not intended as a buy-and-hold tool. For more disclosure, read the fund page and prospectus.

For more information about using inverse and leveraged funds, read our special report.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.