ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of the first ETF in the United States that provides inverse exposure to the investment grade corporate bond market.
The ProShares Short Investment Grade Corporate (NYSE: IGS) seeks to provide -1x the daily performance of the Markit iBoxx® $ Liquid Investment Grade Index, before fees and expenses. The ETF lists on NYSE Arca today.
“There are signs that investment grade corporate bonds could possibly be richly valued relative to historical levels. Since the financial crisis, investment grade corporate bond indexes have reached record highs 1, and credit spreads have tightened significantly,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. “For investors who believe that investment grade corporates could come under pressure, IGS can be used to help hedge against or to seek to benefit from potential declines.”
IGS expands ProShares’ popular lineup of inverse bond ETFs to six. ProShares’ four inverse Treasury bond ETFs have garnered more than $7 billion of assets since launching less than three years ago. The firm launched its fifth inverse bond fund, ProShares Short High Yield (NYSE: SJB), last week.
|ProShares||Ticker Symbol||Index||Daily Objective*|
|New Inverse Bond ETF|
|Short Investment Grade Corporate||IGS||Markit iBoxx $ Liquid Investment Grade Index||-1x|
|Existing Inverse Bond ETFs|
|Short High Yield||SJB||Markit iBoxx $ Liquid High Yield Index||-1x|
|UltraShort 20+ Year Treasury||TBT||Barclays Capital 20+ Year U.S. Treasury Index||-2x|
UltraShort 7-10 Year Treasury
|PST||Barclays Capital 7-10 Year U.S. Treasury Index||-2x|
|TPS|| Barclays Capital U.S. Treasury Inflation Protected
Securities (TIPS) Index (Series-L)
|Short 20+ Year Treasury||TBF||Barclays Capital 20+ Year U.S. Treasury Index||-1x|