The NASDAQ Stock Market(R) (Nasdaq:NDAQ) began trading today two new exchange-traded funds (ETFs) designed to provide leveraged and inverse exposure to the NASDAQ Biotechnology Index(R) (Nasdaq:NBI), the most widely used benchmark for U.S. biotechnology sector.1 The ETFs are sponsored by ProShares, the leading manager of leveraged and inverse ETFs.2
ProShares Ultra Nasdaq Biotechnology (Nasdaq:BIB) aims to provide investment results that correspond to 200% of the daily performance of the NASDAQ Biotechnology Index (before fees and expenses), while ProShares UltraShort Nasdaq Biotechnology (Nasdaq:BIS) seeks to produce 200% of the inverse daily performance of the NASDAQ Biotechnology Index (before fees and expenses).
These funds seek a 200% or -200% return of their indices for a single day before fees and expenses. Due to the compounding of daily returns, returns over periods other than one day will likely differ in amount and possibly direction from the target returns for the same period. Investors should monitor their holdings consistent with their strategies, as frequently as daily. The funds' prospectuses describing correlation, leverage and other risks are available at www.proshares.com.
"These new ProShares ETFs give investors additional flexibility to develop their trading strategies to their individual needs," said John Jacobs, Executive Vice President, NASDAQ OMX Global Index Group. "With the launch of these ETFs, investors can now employ new investment strategies involving some of the world's most innovative biotechnology companies."
The NASDAQ Biotechnology Index contains securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as either Biotechnology or Pharmaceuticals which also meet other eligibility criteria. The NASDAQ Biotechnology Index is calculated under a modified capitalization-weighted methodology. To view a list of companies in the index, visit https://indexes.nasdaqomx.com/weighting.aspx?IndexSymbol=NBI&menuIndex=0.
NASDAQ OMX is a global leader in creating and licensing strategy indexes and is home to the most widely watched indexes in the world. As a premier, full-service provider, the NASDAQ OMX Global Index Group is dedicated to designing powerful indexes that are in sync with a continually changing market environment. Utilizing its expanded coverage as a global company, NASDAQ OMX has approximately 1,400 diverse equity, commodity and fixed-income indexes in the U.S., Europe, and throughout the world.
NASDAQ OMX's calculation, licensing and marketing support provide the tools to measure and replicate global markets. The NASDAQ OMX Global Index Group's range of services covers the entire business process from index design to calculation and dissemination. For more information about NASDAQ OMX indexes, visit https://indexes.nasdaqomx.com/.
Access to essential historical index data for NASDAQ OMX indexes can be accessed from a single source, NASDAQ OMX Global Index Watch. For additional information, please visit https://indexes.nasdaqomx.com/indexwatch.aspx.
About ProShares
ProShares is part of ProFunds Group, the leader in leveraged and inverse funds.2 ProShares introduced the first leveraged and inverse ETFs in the U.S. in 2006. Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies.