ProShares has added the first and only triple leveraged and inverse crude oil-related exchange traded funds, allowing energy traders to obtain geared exposure to the commodity through the efficient ETF investment vehicle.
On Monday, ProShares rolled out the ProShares UltraPro 3x Crude Oil ETF (NYSEArca: OILU) and ProShares UltraPro 3x Short Crude Oil ETF (NYSEArca: OILD). Both new funds come with a 0.95% expense ratio.
“With OILU and OILD, investors can, for the first time, obtain daily 3x and -3x exposure to crude oil with the liquidity, transparency and cost-effectiveness of ETFs,” Michael L. Sapir, chief executive officer of ProShare Capital Management, said in a note. “We are pleased to provide these additional investment choices to knowledgeable investors who pursue tactical strategies.”
OILU and OILD will try to reflect the daily performance that is 3x and -3x, respectively, of the underlying Bloomberg WTI Crude Oil Subindex. The two ETFs will gain exposure to the benchmark by investing in listed futures contracts for West Texas Intermediate sweet, light crude oil futures contracts.
The ETF provider will utilize a mathematical approach to investing that determines the type, quantity and mix of investment positions the provider believes should produce daily returns consistent with their 3x or -3x objective.