Daily ETF Watch: ProShares Revamps Fund

ProShares does a do-over on its managed futures ETF.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Today ProShares launched the ProShares Managed Futures Strategy ETF (FUT) on the BATS exchange. For those of you who think you might be seeing double, well, you kind of are.

The ProShares Managed Futures Strategy (FUTS | D) has been trading for more than a year, but it never gathered much in the way of assets. So ProShares is giving it another go. FUT, the new product, is structured as a 1940 Act fund rather than as a commodities pool, a ProShares press release noted. That means no K-1 forms come tax time.

FUT is actively managed, unlike its doppelganger, which tracks the S&P Strategic Futures Index. The new fund will invest up to 25% of its portfolio in a Cayman Islands subsidiary that will, in turn, invest in commodity futures. The rest of the onshore fund’s holdings will be in cashlike investments. Both FUT and FUTS come with an expense ratio of 0.75%.

However, ProShares will be shutting down FUTS, the original fund. Its last day of trading is set for March 18.

New Oil ETN Debuts

In other news, UBS has rolled out the Etracs S&P GSCI Crude Oil Total Return Index ETN (OILX) on the NYSE Arca. The notes are callable after Feb. 27, 2016, and the new ETN comes with a fee amount of 0.50%, undercutting the prices of similar products by a significant margin.

JPM Plans Midcap Fund

J.P. Morgan is planning to add another fund to its family of smart-beta ETFs. The JPMorgan Diversified Return U.S. Mid Cap Equity ETF will join five other funds covering developed markets, emerging markets, Europe and U.S. large-cap stocks as well as global equities.

The Diversified Return ETF family currently has $273 million in assets under management; the largest of the five funds is the JPMorgan Diversified Return International Equity ETF (JPIN | D-53), with more than $141 million in AUM. The family tracks indexes from FTSE Russell that capture the size, style, momentum and volatility factors, and are designed to distribute risk evenly across sectors and regions.

The underlying index of the proposed midcap fund is derived from the Russell Midcap Index.

The filing did not include an expense ratio or ticker, but it did indicate the fund would list on the NYSE Arca.


Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.