ProShares, a premier provider of ETFs, announced today the launch of ProShares Equities for Rising Rates ETF (EQRR), the first U.S. equity ETF specifically designed to outperform traditional large-cap indexes, such as the S&P 500, in a rising interest rate environment....
Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy
The fund is benchmarked to the Nasdaq U.S. Large Cap Equities for Rising Rates Index and is listed on the Nasdaq exchange.
“EQRR is for investors who expect rising interest rates and want to outperform traditional large-cap indexes as rates go up,” said Michael L. Sapir, co-founder and CEO of ProShare Advisors, LLC, the advisor to ProShares. “EQRR takes those sectors most positively correlated with interest rates, then within those sectors invests in the companies that have tended to outperform during periods of rising rates.”
The fund seeks to track the performance of the Nasdaq U.S. Large Cap Equities for Rising Rates Index. The index methodology starts with the 500 largest listed U.S. stocks and selects the five U.S. large-cap sectors that have most recently demonstrated the highest correlation to weekly changes in 10-year U.S. Treasury yields.
It then identifies the top 10 stocks in each sector that have the highest correlation of relative performance—versus 500 of the largest listed U.S. stocks—to changes in the 10-Year yield. Stocks in sectors with a higher correlation to rising rates have a heavier weighting in the index.
This process is repeated quarterly to maintain a portfolio of 50 stocks. The resulting portfolio aims to provide relative outperformance compared to traditional large-cap indexes during periods of rising U.S. Treasury interest rates.
Source: ETFWorld
WMCR
Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)
Lascia un commento