ProShares Launches First German Sovereign/Sub-Sovereign Bond ETF
January 26 2012 - 8:30AM
Business Wire
ProShares, the country’s fourth most successful exchange traded
fund (ETF) company,1 today announced the launch of ProShares German
Sovereign/Sub-Sovereign ETF (NYSE: GGOV), the first ETF in the
United States focused on sovereign and sub-sovereign debt from
Germany. Germany has the world’s third-largest public debt market2
and is widely recognized for its fiscal strength. The ETF lists on
NYSE Arca today.
GGOV seeks to match the performance of Markit iBoxx EUR Germany
Sovereign & Sub-Sovereign Liquid Index, before fees and
expenses.
“Many investors have fixed income portfolios concentrated in
high credit quality U.S. bonds,” said Michael L. Sapir, Chairman
and CEO of ProShare Advisors LLC, ProShares’ investment advisor.
“This ETF can help these investors manage risk by adding
diversification through international bond exposure.”
About GGOV’s Benchmark
GGOV’s benchmark includes only investment grade debt,3 the
majority of which currently has the highest rating from Standard
& Poor’s, Moody’s and Fitch. The benchmark seeks to track the
returns of euro-denominated general obligation bonds issued by the
Federal Republic of Germany, state governments of Germany,
government agencies or institutions, and entities that are owned or
guaranteed by German federal or state governments.
About ProShares
ProShares is the country’s fourth most successful exchange
traded fund (ETF) company,1 with 129 funds and nearly $23 billion
in assets.4 ProShares’ lineup includes the largest family of geared
(leveraged and inverse) ETFs.5 ProShare Advisors and ProShare
Capital Management are affiliated with ProFund Advisors, which was
founded in 1997. Together, they manage more than $26 billion in ETF
and mutual fund assets.4
1 Source: Financial Research Corporation, based on analysis of
organic net sales of U.S. exchange traded products (as of
6/30/2011). Includes products launched by their current management
company; excludes products acquired through purchase or merger.
2 CIA World Factbook 2011
3 At the time of quarterly rebalancing
4 Assets as of 12/31/2011
5 Source: Lipper, based on a worldwide analysis of all known
providers of funds in these categories. The analysis covered ETFs
and ETNs by the number of funds and assets (as of 6/30/2011).
Investing involves risk, including the possible loss of
principal. ProShares are non-diversified and entail 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.
International investments may also involve risk from unfavorable
fluctuations in currency values, differences in generally accepted
accounting principles, and economic or political instability.
Securities focusing on a single country may be subject to higher
volatility. The fund may be adversely affected by the economic
uncertainty experienced recently by various members of the European
Union. Bonds will decrease in value as interest rates rise. 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.
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.
Obtain them from your financial advisor or broker/dealer
representative or by visiting ProShares.com.
ProShares are distributed by SEI Investments Distribution Co.,
which is not affiliated with the fund’s advisor.
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