REK Profile
The ProShares Short Real Estate fund is designed to achieve its investment objective by utilizing a range of financial instruments to provide inverse exposure to the performance of the real estate sector. The fund invests in various instruments, including derivatives and other securities, to align its daily returns with the inverse performance of its benchmark index. This approach allows investors to profit from declines in the real estate sector while hedging against potential losses in their broader portfolios.
The underlying index tracks the performance of real estate investment trusts (REITs) and other companies involved in real estate through direct investment or related activities. This includes firms engaged in property development, management, and ownership, as well as property agencies that facilitate real estate transactions. By focusing on these entities, the index provides a comprehensive measure of the real estate sector's performance, encompassing a wide range of real estate-related activities.
REITs and real estate companies are key components of the index due to their significant role in the real estate market. These companies typically own, operate, or finance income-producing real estate across various property sectors, such as residential, commercial, and industrial. The fund’s investment strategy capitalizes on the potential for declines in the value of these real estate investments, making it an effective tool for investors seeking to mitigate risks associated with real estate market downturns.
As a non-diversified fund, ProShares Short Real Estate focuses its investments on a specific sector, namely real estate, without broadening its exposure to other sectors or asset classes. This concentrated approach aligns with its goal of delivering returns that are inversely related to the real estate market’s performance, offering investors a specialized tool for managing sector-specific risks and potentially enhancing portfolio resilience during periods of real estate market volatility.
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