ProShare launches first 130/30 ETF
ProShare Advisors of Bethesda, Md., today announced the introduction of the first exchange traded fund to follow a 130/30 investment strategy.
The fund will short 30% of the portfolio and use the proceeds to go long an extra 30% in areas where growth is anticipated.
The ProShares Credit Suisse 130/30 ETF (CSM) is the first of a new category of ETFs called Alpha ProShares.
Alpha ProShares are designed to provide advanced investment strategies to investors in the form of ETFs.
ProShares Credit Suisse 130/30 tracks the Credit Suisse 130/30 Large-Cap Index.
The index was introduced in 2007 by the Credit Suisse Group AG of Zurich, Switzerland, in collaboration with AlphaSimplex Group LLC of Cambridge, Mass.
It was designed by Dr. Andrew Lo, chairman and chief scientific officer of AlphaSimplex Group and Pankaj Patel director of quantitative research at Credit Suisse.
“We believe that this new ETF will be attractive for investors’ 130/30 allocations because it combines a rigorous quantitative investment process developed” with the low cost and liquidity of an ETF,” Michael Sapir, chairman and chief executive of ProShare, said in a statement.
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