ProShares

Only days after two lawsuits were filed against ProShares’ UltraShort Real Estate Fund (SRS: Quote, Profile, Advanced Chart, News), a third legal entity will begin investigating the leveraged ETF sector as a whole. Stanley, Mandel & Iola, L.L.P. and Wolf Haldenstein Adler Freeman & Herz LLP have announced their intent to find wrongdoing committed by [...]

Another lawsuit has been filed against ProShares’ UltraShort Real Estate Fund (SRS: Quote, Profile, Advanced Chart, News) by the law office of Howard G. Smith. The latest filing is more dramatic in scope, having already been filed as a class action lawsuit. The lawsuit takes a different approach than the one filed previously by Labaton [...]

After placing leveraged exchange-traded funds into an administrative review, Morgan Stanley has decided to stop selling broker-initiated purchases of leveraged products to its clients. The decision is quite timely, arriving only one day after a lawsuit was filed against ProShares for one of its poor tracking funds. Morgan Stanley also commented on investor-initiated purchases of [...]

In the midst of the heated leveraged ETF debate, a lawsuit was filed in New York on Thursday against ProShares, alleging that the issuer did not accurately describe the inherent risks in its ProShares UltraShort Real Estate Fund (SRS: Quote, Profile, Advanced Chart, News). The suit promises to end in a landmark decision, which will [...]

After the first 130/30 fund launch by ProShares, Direxion has filed with the SEC to create its own 130/30 ETF. The strategy leverages the fund’s assets by selling stocks short and reinvesting the proceeds to long more shares; the result is a portfolio that has an exposure 1.6 times greater than the total amount invested. [...]

William Galvin, Massachusetts’ Secretary of State, confirmed reports that the state would investigate three ETF issuers for their leveraged Treasury ETFs. Rydex Investments, Direxion, and ProShares were all mentioned by the Secretary, who plans to investigate the issuers for their leveraged funds’ sales practices. The state of Massachusetts has no issue with ETFs, but simply [...]

ProShares will launch the first 130/30 ETF on July 14, hoping to attract investors who could ordinarily only invest in 130/30 mutual funds. The ProShares Credit Suisse 130/30 will track a 130/30 Large-Cap Index first launched in 2008, according to Pensions and Investments. The 130/30 system’s goal is to leverage the invested amounts while deriving [...]

At the beginning of the financial crisis, savvy investors made Treasuries their investment mainstay, but the instrument lost steam during the market’s 2009 strengthening. Months after the markets have calmed and pushed off their lows, investors are moving back to Treasuries as uncertainty builds. A recent ten year auction provided the best results since 1995, [...]

Last year was the time of exchange-traded commodity funds, ranging from oil and gold to wheat, corn, and basic building metals. Just one year later, exchange-traded funds have grown tremendously to take a foothold in the actively-managed space. Of the handful of firms entering the actively-managed scene, very few are expecting immediate success. Considering that [...]

As ProShares extends its double and triple leveraged funds around the world, it is seeking the help of JP Morgan Worldwide Securities Services, which already manages 64 different ProShares funds with more than $25 billion in assets. The agreement between the two firms will add another eight funds to the list of those managed by [...]