ProShares launches inverse and leveraged crude oil ETFs

Mar 27th, 2017 | By | Category: Commodities

ProShares has launched two new ETFs providing triple leveraged and triple inverse leveraged access to West Texas Intermediate crude oil. The ProShares UltraPro 3x Crude Oil ETF (NYSE: OILU) and ProShares UltraPro 3x Short Crude Oil ETF (NYSE: OILD) track the daily performance of the Bloomberg WTI Crude Oil Subindex, providing 3x and -3x exposure respectively.

ProShares launches triple inverse and leveraged crude oil ETFs

ProShares now offer double and triple leveraged and inverse leveraged exposure to crude oil.

“With OILU and OILD, investors can obtain daily 3x and -3x exposure to crude oil with the liquidity, transparency and cost-effectiveness of ETFs,” said Michael L. Sapir, Chief Executive Officer of ProShare Capital Management, the ETFs’ sponsor. “We are pleased to provide these additional investment choices to knowledgeable investors who pursue tactical strategies.”

The Bloomberg WTI Crude Oil Subindex reflects the performance of futures contracts of West Texas Intermediate sweet, light crude oil, which may differ considerably from the performance of the physical crude oil market.

The index is ‘rolling’ with rolls occurring over a period of five business days in certain months according to a pre-determined schedule.

The Bloomberg WTI Crude Oil Subindex will reflect the performance of its underlying crude oil futures contracts, including the impact of rolling, without regard to income earned on cash positions.

ProShares also offers double and inverse double exposure to WTI Crude oil. The full suite of ProShares leveraged and inverse crude oil ETFs includes:

ProShares UltraPro 3x Crude Oil ETF (OILU)
ProShares UltraPro 3x Short Crude Oil ETF (OILD)
ProShares Ultra Bloomberg Crude Oil (UCO)
ProShares UltraShort Bloomberg Crude Oil (SCO)

Each ETF has a total expense ratio (TER) of 0.95%.

Due to the compounding of daily returns, returns on leveraged ETFs over periods other than one day may differ in amount and possibly direction from the target return for the same period. These effects tend to be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. As such, leveraged ETFs may only suit sophisticated investors looking for short term tactical exposures.

European investors wishing to gain magnified exposure to crude oil prices, whether long or short, may consider a range of ETPs listed on the London Stock Exchange from providers ETF Securities or Boost ETP. These include the:

ETFS 1x Daily Short Brent Crude – USD (SBRT) TER – 0.98%
ETFS 2x Daily Long Brent Crude – USD (LBRT) TER – 0.98%
ETFS 1x Daily Short WTI Crude Oil – USD (SOIL) TER – 0.98%
ETFS 2x Daily Long WTI Crude Oil – USD (LOIL) TER – 0.98%
ETFS 3x Daily Long WTI Crude Oil – USD (3CRL) TER – 0.98%
ETFS 3x Daily Short WTI Crude Oil – USD (3CRS) TER – 0.98%

Boost WTI Oil 1x Short Daily ETP – USD (OILZ) TER – 0.49%
Boost WTI Oil 1x Short Daily ETP – GBP (OIZL) TER – 0.49%
Boost WTI Oil 2x Short Daily ETP – USD (2OIS) TER – 0.65%
Boost WTI Oil 2x Short Daily ETP – GBP (2OSI) TER – 0.65%
Boost WTI Oil 2x Leverage Daily ETP – USD (2OIL) TER – 0.65%
Boost WTI Oil 2x Leverage Daily ETP – GBP (2OLI) TER – 0.65%
Boost WTI Oil 3x Short Daily ETP – USD (3OIS) TER – 0.99%
Boost WTI Oil 3x Short Daily ETP – GBP (3SOI) TER – 0.99%
Boost WTI Oil 3x Leverage ETP – USD (3OIL) TER – 0.99%
Boost WTI Oil 3x Leverage ETP – GBP (3LOI) TER – 0.99%
Boost Brent Oil 3x Short Daily ETP – USD (3BRS) TER – 0.99%
Boost Brent Oil 3x Short Daily ETP – GBP (3BSR) TER – 0.99%
Boost Brent Oil 3x Leverage Daily ETP – USD (3BRL) TER – 0.99%
Boost Brent Oil 3x Leverage Daily ETP – GBP (3BLR) TER – 0.99%

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