ProShares Announces Changes to ETF Lineup
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The liquidation of the ProShares S&P 500® Bond ETF (SPXB) represents a strategic shift by ProShares as they refine their product offerings. This decision likely stems from a comprehensive analysis of the fund's performance, investor demand and overall fit within the company's portfolio. From a financial standpoint, the closure of an ETF can have implications for current investors who may need to reallocate their assets, potentially incurring transaction costs. Additionally, the liquidation process typically involves selling off the fund's assets, which might impact the underlying bond market, albeit marginally given the vast size of the bond market.
Investors should be aware of the tax implications of such liquidations, as any capital gains distributed as a result of the liquidation process are taxable events. Moreover, the timing of the closure, with a notice period before halting trading, allows investors the opportunity to exit their positions in an orderly fashion, mitigating potential market impact. For ProShares, the move could be seen as a way to concentrate resources on more profitable or strategic offerings, which could be beneficial in the long term if it leads to a more focused and competitive product lineup.
The liquidation of an ETF such as the ProShares S&P 500® Bond ETF might indicate broader industry trends, such as shifts in investor preferences or saturation in certain fund categories. The ETF landscape is highly competitive and providers often prune their offerings to eliminate underperforming or unpopular funds. This action by ProShares may reflect a strategic response to market research that suggests a need to adapt to changing market conditions.
For competitors and the broader market, the closure of SPXB could be a signal to evaluate their own product lines for potential optimizations. Market research might delve into the causes behind the fund's underperformance, whether it be fee structures, fund composition, or investor sentiment. Such insights can inform the development of new products or the enhancement of existing ones to better meet market demands. The impact on the stock market is typically limited in such cases, but it does provide valuable information on the state of the ETF market and potential gaps or opportunities for innovation.
Fund Name |
Ticker |
Exchange |
ProShares S&P 500® Bond ETF |
SPXB |
NYSE Arca |
The last day the fund will accept creation and redemption orders is April 22, 2024. Trading in the fund on NYSE Arca will be halted prior to market open on April 23, 2024. Beginning on April 23, 2024, the fund will not be traded on NYSE Arca, and there will be no secondary market for fund shares. On or about April 23, 2024, the fund will begin the process of liquidating its portfolio and will no longer be managed in accordance with its investment objective. Any shareholders remaining in the fund will have their shares redeemed for cash at net asset value on or about May 6, 2024.
About ProShares
ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than
Important Information
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.
Investing involves risk, including the possible loss of principal. This ProShares ETF entails certain risks, including imperfect benchmark correlation and market price variance, that may decrease performance. Bonds will decrease in value as interest rates rise. The fund concentrates its investments in certain sectors. Narrowly focused investments typically exhibit higher volatility. Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns. Please see summary and full prospectuses for a more complete description of risks.
The "S&P 500®/MarketAxess® Investment Grade Corporate Bonds Index" and related trademarks have been licensed for use by ProShares. "S&P®" is a registered trademark of Standard & Poor’™s Financial Services LLC ("S&P") and "Dow Jones®" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and they have been licensed for use by S&P Dow Jones Indices LLC ("SPDJI") and its affiliates. ProShares have not been passed on by SPDJI and its affiliates as to their legality or suitability. ProShares based on the S&P 500/MarketAxess Investment Grade Corporate Bonds Index are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates and third party licensors, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES AND THIRD PARTY LICENSORS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240401111667/en/
Media Contact:
Tucker Hewes, Hewes Communications Inc., 212.207.9451, tucker@hewescomm.com
Investor Contact:
ProShares, 866.776.5125, ProShares.com
Source: ProShares
FAQ
When will ProShares S&P 500® Bond ETF (SPXB) be liquidated and closed?
Why is ProShares liquidating and closing ProShares S&P 500® Bond ETF (SPXB)?
What is the last day for creation and redemption orders for ProShares S&P 500® Bond ETF (SPXB)?
Will ProShares S&P 500® Bond ETF (SPXB) be traded on NYSE Arca after April 23, 2024?
