ProShares, the largest purveyor of leveraged and inverse ETFs,
filed regulatory paperwork to bring to market two index ETFs
focused on alternative investments-one targeting mergers and
acquisitions and the other seeking exposure to private equity.
The ETFs are:
- ProShares Merger Arbitrage ETF, which aims to capture the
spread between the stock price of a target company at the time
the deal is announced, and the price that the acquiring company
- ProShares Listed Private Equity ETF, which will track an
index of publicly listed companies in the private equity
The filing with the Securities and Exchange Commission didn't
specify the indexes, ticker symbols or the proposed annual expense
ratios of the two funds.
The Proshares Merger Arbitrage ETF will be joining a number of
merger and acquisition ETPs that have come to market in the past
couple of years, as ETF providers look to develop products that can
perform in periods of lackluster economic growth. The ETF focused
on private equity appears to be in a class by itself among U.S.
The most direct competition for the ProShares M&A fund is
the IQ Merger Arbitrage ETF (NYSEArca:MNA), which has $25.6 million
in assets, according to data compiled by IndexUniverse. Credit
Suisse also has two arbitrage ETPs in an ETN wrapper. Those are the
Credit Suisse Merger Arbitrage Liquid Index Exchange Traded Notes
(NYSEArca:CSMA), which has $91.6 million in assets; and a
double-exposure cousin, the 2X Monthly Leveraged Credit Suisse
Merger Arbitrage Liquid Index (Net) ETN (NYSEArca:CSMB), which has
$23.6 million in assets.
ProShares said that both indexes use a mathematical approach and
can gain exposure using representative sampling, meaning the funds
don't have to own all the underlying components in their respective
Permalink | 'copy; Copyright 2009 IndexUniverse LLC. All rights
Don't forget to check IndexUniverse.com's ETF Data
2012 IndexUniverse LLC
. All Rights Reserved.