Proshares Ultrashort Telecommunications (AMEX:TLL)
Historical Stock Chart
From Jul 2019 to Jul 2024
Telecom stocks make up one of the market's most dynamic and volatile
sectors, driven by rapidly changing technologies, the rapid spread of
wireless communication and the convergence of communication, the
internet and consumer entertainment. Now investors can easily get short
or magnified exposure to this sector—and enjoy
the benefits of ETF investing—with two new
ETFs from ProShares.
ProFunds Group, which manages more than 80% of the nation’s
short and leveraged fund assets,1 today
introduces two new ProShares ETFs: Ultra and UltraShort
Telecommunications ProShares, trading on the American Stock Exchange®.
These ETFs combine the convenience and trading flexibility of ETFs with
the potential benefits of magnified or short exposure to the telecom
sector. The ETFs, which are priced and traded throughout market hours,
can be used in a variety of ways, including:
To potentially profit from sector downturns with short telecom exposure
To magnify the impact of your investment dollar by seeking double
daily index performance (before fees and expenses)
To easily adjust overall portfolio exposure to the telecom sector
To execute sector rotation strategies
"This year’s decline in the broad market
may drive many investors to sector strategies to find pockets of
opportunity,” said Michael Sapir, ProFunds
Group Chairman and CEO. “With Ultra Sector and
UltraShort Sector ProShares covering 12 sectors and industries, we now
offer sector investors the opportunity to easily get magnified exposure
or short exposure to any area of the market.”
Ultra Telecommunications ProShares (LTL) for magnified market
exposure
Ultra Telecommunications ProShares provide you with twice the market
exposure as an ordinary telecommunications ETF for the same amount of
cash. The ProShares ETF is designed to double the daily performance of
its benchmark, the Dow Jones U.S. Select Telecommunications IndexSM
(DJSTEL). That means on days when the index rises by 1%, Ultra
Telecommunications ProShares would rise by 2%, before fees and expenses.
Note that the fund’s magnified exposure
applies to losses as well as gains: Its net asset value should lose
approximately twice the same amount, on a percentage basis, as any
decrease in the daily performance of the index.
UltraShort Telecommunications ProShares (TLL) to hedge or profit
from downturns
You can seek profit from a market downturn or seek to hedge existing
positions with UltraShort Telecommunications ProShares—the
first short telecommunications ETF. The ProShares ETF is designed to
double the daily inverse performance of its benchmark, Dow Jones U.S.
Select Telecommunications IndexSM (DJSTEL). So
on days when the index goes down by 1%, the fund should increase by 2%,
before fees and expenses, and when the index rises, the fund should fall.
About ProShares and ProFunds Group
ProShares, launched in June 2006, is now the nation’s
fifth-largest ETF provider.2 It is part of the
$23 billion ProFunds Group, the nation’s
largest manager of short and leveraged funds.3
ProFunds Group also manages more than 100 ProFunds mutual funds. Since
1997, ProFunds has provided mutual fund investors with easier access to
sophisticated investment strategies, with offerings that include mutual
funds that seek to magnify daily index performance and funds that seek
to increase in value when markets decline. ProFunds Group describes the
portfolio managers common to ProFund Advisors LLC, advisor to ProFunds
mutual funds, and ProShare Advisors LLC, advisor to ProShares ETFs.
JPMorgan Worldwide Securities Services provides a full range of ETF
services to ProShares including fund accounting and administration,
transfer agency and custody.
All investing involves risk, including the possible loss of principal.
Investing in Ultra Telecommunications ProShares and UltraShort
Telecommunications ProShares involves certain risks, specifically,
market, correlation, credit, liquidity, aggressive investment technique,
non-diversification, repurchase agreement, and inverse correlation risk
in the UltraShort Telecommunications ProShares. These funds do not
constitute a complete investment program and they may not be suitable
for all investors.
Carefully consider the investment objectives, risks, and charges and
expenses of ProShares and ProFunds before investing. This and other
information can be found in their prospectuses. Read the prospectus(es)
carefully before investing. For a ProShares ETF prospectus, visit
www.proshares.com and seek advice from your financial adviser or
broker/dealer representative. Financial professionals can also call
866-PRO-5125. For a ProFunds mutual funds prospectus, call 888-PRO-FNDS
(individual investors) or 888-PRO-5717 (financial professionals) or
visit www.profunds.com. Read the prospectus(es) carefully before
investing.
ProFunds Distributors, Inc., is distributor for ProFunds mutual funds.
ProShares ETFs are distributed by SEI Investments Distribution Co.,
which is not affiliated with any ProFunds Group affiliate.
“Dow Jones®,”
“Dow Jones U.S. Sector Indexes,”
“Dow Jones Select Sector Indexes”
and “Dow Jones U.S. Select Telecommunications
Index” are service marks of Dow Jones &
Company, Inc. Dow Jones U.S. Sector Indexes have been licensed by Dow
Jones & Company, Inc., for use by ProShares. ProShares have not been
passed on by Dow Jones & Company, Inc., or its affiliates as to their
legality or suitability. ProShares are not sponsored, endorsed, sold or
promoted by Dow Jones & Company, Inc., or its affiliates, and they make
no representation regarding the advisability of investing in these
products.
DOW JONES & COMPANY, INC., AND ITS AFFILIATES MAKE NO WARRANTIES AND
BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
1 Based on ProFunds Group analysis of short and
leveraged mutual funds and ETF providers’
average daily assets as of February 2008.
2 Based on Bloomberg analysis of February 2008
average daily assets for all ETF providers.
3 Based on an analysis by FRC of the largest
providers of funds in these categories. The analysis covered ETFs and
mutual funds by the number of funds and assets (as of October 2007).