21/08/2009 Nyse Arca: An ETF issuer launches ETF providing short exposure to long-term Treasury bonds

ProFunds Group, announced that it is launching an ETF designed to provide short exposure to the market for long-term U.S. Treasury..

bonds. ProShares Short 20+ Year Treasury (TBF) is built to produce 100% of the inverse performance of the Barclays Capital 20+ Year U.S. Treasury Index for a single day, excluding fees and expenses.

The Barclays Capital 20+ Year U.S. Treasury Index measures the performance of U.S. Treasury bonds with maturities of 20 years or greater. The new ETF will be listed on NYSE Arca today.

The Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity greater than 20 years, are non-convertible, are denominated in U.S. dollars, are rated investment grade (at least Baa3 by Moody’s Investors Service or BBB- by S&P), are fixed rate, and have more than $250 million par outstanding.  The Index is weighted by the relative market value of all securities meeting the Index criteria. Excluded from the Index are certain special issues, such as flower bonds, targeted investor notes (TINs), U.S. Treasury inflation protected securities (TIPs), state and local government series bonds (SLGs), and coupon issues that have been stripped from assets already included. The Index is published under the Bloomberg ticker symbol “LT11TRUU.”

“This new ETF is a useful addition to our two ProShares ETFs currently offering short exposure to the U.S. Treasury market—the ProShares UltraShort 7-10 Year and UltraShort 20+ Year Treasury funds,” said Michael L. Sapir, ProFunds Group Chairman and CEO. “We are introducing this new ProShare in direct response to strong investor demand for a single beta short treasury fund.”

Source: ETFWorld.com – Nyse Arca / ProFunds Group