ProShares, a leading provider of alternative ETFs, announced that
effective today, it is lowering the net expense ratio for CSM, a
Morningstar rated 5-star ETF, from 95 to 45 basis points. CSM provides
an alternative approach for investors who want to outperform large cap
indexes, but don’t have faith in actively managed mutual funds.
“CSM combines the discipline and transparency of indexing with an
opportunity to beat traditional index returns,” said Michael Sapir,
Chairman and CEO of ProShare Advisors LLC, ProShares’ investment
advisor. “We’re pleased that now CSM will be even more competitive with
other large cap options.”
CSM seeks investment results, before fees and expenses, that track the
Credit Suisse 130/30 Large Cap index, a rules-based benchmark designed
to outperform an index of the 500 largest capitalization U.S. stocks. It
was created in 2007 by recognized experts in quantitative finance—MIT
Professor Andrew W. Lo, PhD, and Pankaj N. Patel, CFA, of Credit Suisse.
The index has 100% equity exposure and can be expected to move in the
same direction as large cap stocks. However, its methodology provides
more sources of potential return than a typical large cap index. The
index overweights positions in stocks expected to rise and, rather than
just underweighting those expected to fall, seeks profit from short
exposure.
New Name
ProShares also announced that it is changing the ETF’s name to ProShares
Large Cap Core Plus from ProShares Credit Suisse 130/30 to better
reflect its role in the large cap portion of a portfolio. The name
change will not affect the fund’s holdings or its strategy.
CSM earned a 5-star rating from Morningstar in the U.S. Long/Short
Equity ETFs Category Overall for the three- year period ending December
31, 2012.
For more information about Large Cap Core Plus, visit ProShares.com.
About ProShares
Offering the nation’s largest lineup of alternative ETFs, ProShares
helps investors to go beyond the limitations of conventional investing
and face today’s market challenges. Each ProShares ETF provides access
to an alternative investment strategy delivered with the liquidity,
transparency and cost effectiveness of an ETF. ProShares’ lineup of 139
ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged
and inverse), and Inflation and Volatility ETFs.
The net expense ratio is subject to a waiver in effect at least until
September 30, 2014.
CSM rated 5 stars for the 3-year period ending December 31, 2012 among
96 U.S. long/short equity ETFs. © 2013 Morningstar, Inc. All Rights
Reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible
for any damages or losses arising from any use of this information. The
Morningstar Rating™ is provided for those ETFs with at least a 3-year
history. Ratings are based on the ETF’s Morningstar Risk-Adjusted Return
measure which accounts for variation in monthly performance. The fund’s
performance and rating are calculated based on net asset value (NAV),
not market price. An ETF’s risk-adjusted return includes a brokerage
commission estimate. This estimate is intended to reflect what an
average investor would pay when buying or selling an ETF. This estimate
is subject to change, and the actual commission an investor pays may be
higher or lower. Morningstar compares each ETF’s risk-adjusted return to
the open-end mutual fund rating breakpoints for that category. The top
10% of ETFs in each category receive 5 stars, the next 22.5% receive 4
stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and
the bottom 10% receive 1 star. The overall rating for an ETF is based on
a weighted average of the time-period ratings (e.g., the ETF’s 3-year
rating). The determination of an ETF’s rating does not affect the retail
open-end mutual fund data published by Morningstar. Past performance is
no guarantee of future results.
ProShares has the largest lineup of alternative ETFs in the United
States according to Financial Research Corporation (“FRC”), based on
analysis of all the known alternative ETF providers (as defined by FRC)
by their number of funds and assets (as of 3/31/2012).
There is no guarantee any ProShares ETF will achieve its investment
objective.
Investing involves risk, including the possible loss of principal.
ProShares are non-diversified and entail certain costs and risks,
including risk associated with the use of derivatives (swap agreements,
futures contracts and similar instruments), imperfect benchmark
correlation, leverage and market price variance. Short positions lose
value as security prices increase. Leverage can increase market exposure
and magnify investment risk. These risks can increase volatility and
decrease performance. Please see the summary and full prospectuses for a
more complete description of risks.
The index is designed to replicate an investment strategy that
establishes either long or short positions in certain of the 500 largest
U.S. market cap equities (the “Universe”). Short positions will
approximate 30% of index portfolio value. Short sale proceeds are used
to purchase 30% more in long positions using leverage. There is no
guarantee the index methodology will result in returns exceeding the
index Universe returns. It is not possible to invest directly in an
index.
“Credit Suisse” and “Credit Suisse 130/30 Large Cap IndexTM” are
trademarks of Credit Suisse Securities (USA) LLC or one of its
affiliates and have been licensed for use by ProShares. ProShares have
not been passed on by Credit Suisse or its affiliates as to their
legality or suitability. ProShares based on the Credit Suisse 130/30
Large Cap Index are not sponsored, endorsed, or promoted by Credit
Suisse or its affiliates, and they make no representation regarding the
advisability of investing in ProShares. THIS ENTITY AND ITS AFFILIATES
MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
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.
ProShares are distributed by SEI Investments Distribution Co., which is
not affiliated with the fund’s advisor.
