“TYTE and WYDE have a variety of uses in sophisticated portfolios,” said
While a wide selection of ETFs providing pure exposure to corporate credit have long been available in
About TYTE and WYDE
TYTE and WYDE get pure exposure to changes in credit spreads by investing in index-based credit default swaps (CDS), instruments that reflect the market’s view of a bond issuer’s credit quality. The funds’ exposure is not leveraged.
The CDS market is generally viewed as the most efficient and liquid market for protection against corporate bond defaults. With more than
*Volatility (measured by standard deviation) for MARKIT CDX.NA.HY 5-year TOTAL RETURN INDEX, a benchmark for the high yield CDS market, has from its 2007 inception through
Investing involves risk, including the possible loss of principal. ProShares ETFs are generally non-diversified and each entails certain risks, including risks associated with the use of derivatives (swap agreements, futures contracts and similar instruments), leverage and market price variance, all of which can increase volatility and decrease performance. Narrowly focused investments typically exhibit higher volatility. Please see their summary and full prospectuses for a more complete description of risks. There is no guarantee any
These ETFs are actively managed and there is no guarantee investments selected and strategies employed will achieve the intended results. Active management may also increase transaction costs. Risks related to credit default swaps (“CDS”) may include lack of an active market and difficulty in valuation. Because these ETFs are exposed to high yield credit, there may be greater levels of credit, liquidity and valuation risk than for higher rated instruments. Short ETFs generally lose value as the underlying credit market improves. Investors should actively manage and monitor their investments. These ETFs may not be suitable for all investors.
These ETFs participate in BATS Global Market’s Competitive Liquidity Provider (“CLP”) Program. Participation in the BATS CLP Program (http://www.batstrading.com/listings/market_maker/etp/) may have potential impacts on the price and liquidity of the security. In particular, there could be adverse impacts on a purchaser’s sale of an ETF that leaves the program.
Carefully consider the investment objectives, risks, charges and expenses of
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