ProShares announced that its inflation ETF (NYSE Arca: RINF) will be changing its benchmark to the Citi 30-Year TIPS (Treasury Rate-Hedged) Index. The ETF’s name also will be changing. These changes will be effective on or about April 15, 2016.
Index/Name Change Details
|Ticker||Current ETF Name||Current Index||New ETF Name||New Index|
ProShares 30 Year
Citi 30-Year TIPS
RINF’s objective will be to seek investment results, before fees and expenses, that track the performance of the Citi 30-Year TIPS (Treasury Rate-Hedged) Index. Both the current and the new index consist of long positions in TIPS and short positions in Treasurys, and are measures of the 30-year breakeven rate of inflation or BEI. The 30-year BEI is considered to be a measure of the market’s expectations for inflation over the next 30 years.
No other changes are being made to the ETF at this time.
About the Index
The Citi 30-Year TIPS (Treasury Rate-Hedged) Index tracks the performance of long positions in the most recently issued 30-year Treasury Inflation-Protected Securities (TIPS) and duration-adjusted short positions in U.S. Treasury bonds of, in aggregate, approximate equivalent duration to the TIPS. The index seeks to achieve an overall effective duration of zero. The difference in yield (or spread) between these bonds (Treasury yield minus TIPS yield) is commonly referred to as a breakeven rate of inflation.
ProShares helps investors to go beyond the limitations of conventional investing and face today's market challenges. ProShares strives to help investors build better portfolios by providing access to alternative investments delivered with the liquidity, transparency and cost effectiveness of ETFs. Our wide array of alternative ETFs can help you reduce volatility, manage risk and enhance returns.
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), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Please see their summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.
Unlike many traditional bond funds, this ETF is not designed to provide steady income. The level of the index (and this fund) will fluctuate based on changes in the price of the underlying bonds, not their yields. The returns of this fund will be more directly linked to percentage changes in the index than to percentage changes in breakeven inflation ("BEI"). The index is not designed to measure the realized rate of inflation, nor does it seek to replicate the returns of any index or measure of actual consumer price levels. Additional factors besides inflation expectations, such as liquidity and risk premiums, can materially affect BEI levels.
"CITI" is a trademark and service mark of Citigroup Inc. or its affiliates, is used and registered throughout the world, and has been licensed for use by ProShares. ProShares ETFs based on the "Citi 30-Year TIPS (Treasury Rate-Hedged) Index" are not sponsored, endorsed, sold, or promoted by Citigroup Index LLC ("Citi Index") or its affiliates (collectively, "Citigroup"), and they make no representation regarding the advisability of investing in ProShares ETFs. CITI INDEX MAKES NO EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall Citigroup be liable for any direct, indirect, special or consequential damages in connection with any use of the "Citi 30-Year TIPS (Treasury Rate-Hedged) Index."
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor.