ProShares is largely known for their wide selection of leveraged and leveraged inverse ETFs that track various segments of the equity, fixed income, and commodity markets.
One of their unleveraged inverse products that is linked to the S&P 500 Index, SH (ProShares Short S&P 500, Expense Ratio 0.95%) has seen an increase in options activity this week amid above average trading volume lately too.
SH delivers the daily inverse (unlevered) return of the S&P 500, and the fund has become popular among hedgers and traders alike, whom understandably like to take the slower lane than say two or three times daily leveraged products.
Since its 2006 inception, SH has attracted $1.9 billion in assets under management and is the largest ETP in the “Inverse Equity” category in terms of fund size currently. [Short ETFs See Inflows on Fears Market Set for a Fall]
Other prominent products in the un-levered inverse category in terms of asset sizes, and that we foresee an increase in institutional usage and adoption not only in the near term but potentially down the road are RWM (ProShares Short Russell 2000, Expense Ratio 0.95%), DOG (ProShares Short Dow 30, Expense Ratio 0.95%), and EUM (ProShares Short MSCI Emerging Markets, Expense Ratio 0.95%), as these funds have garnered from $280 million to $513 million thus far in overall asset levels.
Smaller funds that are tagged to broad based indices and that are structured in the same way as those mentioned above include PSQ (ProShares Short QQQ, Expense Ratio 0.95%), EFZ (ProShares Short MSCI EAFE, Expense Ratio 0.95%), MYY (ProShares Short MidCap 400, Expense Ratio 0.95%), SBB (ProShares Short SmallCap600, Expense Ratio 0.95%), and TOTS (Direxion Daily Total Market Bear 1X, Expense Ratio 0.65%), which is notably cheaper in price than other funds in the category, but still remains small in terms of asset base. With increased awareness in terms of these products, and all of a sudden, a faltering bull market, watch these names closely for flurries of activity and perhaps some hints at how institutional money managers are playing the markets in the short term.
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.
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