ProShares has launched its first leveraged and inverse exchange traded funds that follow CBOE Volatility Index futures.

ProShares Ultra VIX Short-Term Futures ETF (NYSEArca: UVXY) will try to reflect 200% of the daily performance of the S&P 500 VIX Short-term Futures Index. UVXY has an expense ratio of 0.95%.

The ProShares Short VIX Short-Term Futures ETF (NYSEArca: SVXY) is an inverse fund that provides 100% of the daily opposite return of the index. The ETF is designed to rise when VIX futures fall. SVXY has an expense ratio of 0.95%. [Leveraged ETFs See Inflows in Q3]

“Many investors are focused on volatility of the equity markets and are interested in tools that could help manage or incorporate volatility in sophisticated portfolios,” Michael L. Sapir, Chairman and CEO of ProShare Capital Management, commented in a press release. “Now, with our introduction of these new ProShares, investors for the first time can get leveraged or inverse exposure to VIX futures with an exchange traded fund.”

ProShares launched the first two U.S.-listed VIX-related ETFs, the ProShares VIX Short-Term Futures (NYSEArca: VIXY) and ProShares VIX Mid-Term Futures (NYSEArca: VIXM), earlier in 2011.

It should be noted that the new funds will only meet their target on a daily basis. As a result of compounding of daily returns, returns over a longer period will differ from the benchmark target returns. Also, they follow VIX futures, not the spot price. [Volatility-Linked ETFs Rise to 2011 High]

For more information on market volatility, visit our volatility category.

Max Chen 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.