BETHESDA, Md. -- (Business Wire)
ProShares, a premier provider of alternative ETFs, today announced the
launch of the ProShares Morningstar Alternatives Solution ETF (ALTS).
ALTS is the only ETF based on a Morningstar index comprising a broad
range of alternative strategies. When added to a traditional stock and
bond portfolio, ALTS is designed to enhance risk-adjusted returns.
“As the popularity of alternative investments grows, many investors
struggle with how to incorporate these strategies in a portfolio,” said
Michael L. Sapir, Chairman and CEO of ProShares Advisers, LLC. “We are
thrilled to collaborate with Morningstar to provide an alternatives
solution that can help investors build better portfolios.”
“ProShares has one of the broadest suites of alternative ETFs,” said
Sanjay Arya, head of Morningstar Indexes. “Creating an index that
provides diversified exposure to alternative strategies aligns with
Morningstar’s goal of helping investors achieve better outcomes.”
The Morningstar® Diversified Alternatives IndexSM
is based on the asset allocation and construction expertise of
Morningstar and its subsidiary Ibbotson Associates. The index allocates
among a diversified set of ProShares alternative ETFs covering
strategies including hedge fund replication, long/short equity, merger
arbitrage, managed futures, breakeven inflation, infrastructure and
listed private equity. Morningstar dynamically adjusts the base
allocation by applying a tactical momentum signal based on price trends
over time in each underlying ETF.
For at least the first two years following the launch of the ProShares
Morningstar Alternatives Solution, all investment advisory and
management service fees will be waived.1
About ProShares
ProShares offers the nation's largest lineup of alternative ETFs. We
help investors to go beyond the limitations of conventional investing
and face today's market challenges. ProShares helps investors build
better portfolios by providing access to alternative investments
delivered with the liquidity, transparency and cost effectiveness of
ETFs. Our lineup of 150 alternative ETFs can help you reduce volatility,
manage risk and enhance returns.
1Until at least October 31, 2016, ProShare Advisors will
waive all of its investment advisory and management service fees. Total
expenses, including acquired fund fees, will also be capped at 95 basis
points. The estimated gross expense ratio is 1.24, as shown in the most
recent prospectus.
Investing involves risk, including the possible loss of principal.
ProShares ETFs are generally non-diversified and each entails certain
risks, including risk associated with the use of derivatives (swap
agreements, futures contracts and similar instruments), imperfect
benchmark correlation, leverage and market price variance, all of which
can increase volatility and decrease performance. There is no guarantee
any ProShares ETF will achieve its investment objective.
ALTS is a fund of ETFs that is designed to track the performance of the
Morningstar® Diversified Alternatives IndexSM,
which allocates primarily among underlying ETFs that are affiliated with
the Advisor. This may create potential conflicts of interest. An
investment in ALTS will entail more direct and indirect costs and
expenses than a direct investment in the underlying ETFs. The underlying
ETFs may include ETFs that are not investment companies regulated under
the Investment Company Act of 1940 and are not afforded its protections.
ALTS allocates among a set of underlying ProShares ETFs that employ
alternative and non-traditional strategies such as long/short, market
neutral, managed futures, hedge fund replication, private equity,
infrastructure and inflation-related investments. ALTS is subject to the
investing risks of these underlying ETFs to the extent it allocates to
them. For more on specific risks related to these underlying ETFs,
please see the summary and full prospectuses for ALTS and the underlying
ETFs. There is no guarantee that ALTS will produce high or even positive
returns, or that it will enhance risk-adjusted portfolio returns when
combined with traditional investments. Short positions lose value as
security prices increase. Leverage can increase market exposure and
magnify investment risk. Investments in smaller companies typically
exhibit higher volatility. International investments may involve risks
from: geographic concentration, differences in valuation and valuation
times, unfavorable fluctuations in currency, differences in generally
accepted accounting principles, and from economic or political
instability. In emerging markets, all these risks are heightened, and
lower trading volumes may occur. There are additional risks related to
commodity investments due to large institutional purchases or sales, and
natural and technological factors such as severe weather, unusual
climate change, and development and depletions of alternative resources.
Carefully consider the investment objectives, risks, charges and
expenses of ProShares before investing. Read them carefully before
investing. This and other information can be found in their summary and
full prospectuses. Obtain them from your financial advisor or
broker/dealer representative or by visiting ProShares.com.
The “Morningstar® Diversified Alternatives IndexSM” is a
product of Morningstar, Inc. (Morningstar) and has been licensed for use
by ProShares. ProShares have not been passed on by Morningstar or its
affiliates as to their legality or suitability. ProShares based on the
Morningstar Diversified Alternatives Index are not sponsored, endorsed,
sold or promoted by Morningstar or its affiliates, and Morningstar makes
no representation regarding the advisability of investing in ProShares. MORNINGSTAR
AND ITS AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT
TO PROSHARES.
ProShares are distributed by SEI Investments Distribution Co., which is
not affiliated with the funds' advisor or sponsor. © 2014 PSA 2014-5370
Contacts:
Media:
Hewes Communications, Inc.
Tucker Hewes,
212-207-9451
tucker@hewescomm.com
or
Investor:
ProShares,
866-776-5125
ProShares.com
Source: ProShares
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