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Tools for Turbulent Markets ProShares Volatility ETFs

Post on: 15 Май, 2015 No Comment

We offer four ETFs that provide exposure to VIX futures:

* Before fees and expenses.

‡ Paper copies are available by contacting ProShares Client Services at 866.PRO.5125 (866.776.5125)

Make Volatility Work for You. ProShares Can Help You:

Capitalize on U.S. equity market volatility.

VIXY, UVXY and VIXM can be used to seek profits from expected short- or mid-term increases in volatility.
SVXY can help you benefit from potential declines in short-term volatility.

Diversify, and hedge against, U.S. equity market risk.

With benchmarks 1 that have historically been negatively correlated to the S&P 500, VIXY, UVXY and VIXM can be strategic tools to help hedge and diversify portfolios during turbulent market conditions.

The VIX Short- and Mid-Term Futures Indexes have been negatively correlated to the S&P 500 and have tended to rise significantly during periods of market stress. 1

Rapidly respond to changing market conditions.

ProShares Volatility ETFs offer flexibility, accessibility and liquidity.

About the VIX and VIX Futures Indexes

The CBOE Volatility Index (VIX ) is a widely followed measure of the expected volatility of the S&P 500. Since the VIX is not directly investable, VIX futures contracts are often used to achieve exposure to S&P 500 volatility.

S&P 500 VIX Short-Term Futures Index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for VIX one month in the future. The index maintains an average weighted settlement date of one month in the future by rolling a portion of the position in the first month VIX futures contract into the second month VIX futures contract on a daily basis.

S&P 500 VIX Mid-Term Futures Index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for VIX five months in the future. The index maintains an average weighted settlement date of five months in the future by rolling a portion of the position in the fourth month VIX futures contract into the seventh month VIX futures contract on a daily basis.

Potential Risks

Performance—There are no guarantees or assurances that the funds or their benchmark indexes will achieve their intended objectives, or that the indexes will continue their negative correlation to the S&P 500. Past performance does not guarantee future results.

VIX futures indexes are mean reverting; funds benchmarked to them should not be expected to appreciate over extended periods.
Failure of the volatility markets to exhibit low or negative correlation to general markets will reduce diversification benefits and may exacerbate losses to an investor’s portfolio. Diversification may not protect against market risk.

Futures exposure—These ETFs invest in futures, which may subject the funds to greater volatility than investment in traditional securities. VIX futures are among the most volatile of futures contracts.

For more, please see the prospectus .