ProShares to Close Bearish Telecom ETF

ProShares, the largest issuer of inverse and leveraged exchange traded funds, said it will close the ProShares UltraShort Telecommunications ETF (NYSEArca: TLL).

“After the close of business on September 14, 2015, the fund will no longer accept creation orders. Trading in the fund will be suspended prior to market open on September 15, 2015. Fund holdings will be liquidated at close of business on September 14 or shortly thereafter. Beginning September 15, the fund will not be traded on NYSE Arca and there will be no secondary market for the shares. Once the fund is in the process of liquidating its portfolio, it will not be managed in accordance with its investment objective. Proceeds of the liquidation are scheduled to be distributed to shareholders on or about September 30, 2015,” according to a statement issued by ProShares.

Maryland-based ProShares cited limited investor interest as the reason for closing TLL.

The ETF attempts to deliver twice the daily inverse performance of the Dow Jones U.S. Select Telecommunications Index. That is the underlying for the benchmark iShares U.S. Telecommunications ETF (NYSEArca: IYZ).

Over 30 ETFs have closed this year, but more than quadruple that amount have come to market. In May, ProShares announced the close of the ProShares Ultra Australian Dollar (NYSEArca: GDAY).

ProShares UltraShort Telecommunications

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