RWM Profile
The ProShares Short Russell 2000 ETF is designed to provide investors with an inverse exposure to the performance of the Russell 2000 Index, which represents a broad segment of small-cap U.S. companies. This actively managed fund aims to achieve its investment objective by utilizing financial instruments that ProShare Advisors believes will effectively generate daily returns opposite to those of the Russell 2000 Index. The ETF targets daily investment results that correspond to the inverse of the performance of the index, offering a hedge or speculative opportunity for investors anticipating declines in small-cap stock values.
The Russell 2000 Index, used as a benchmark, is a float-adjusted, market capitalization-weighted index that includes approximately 2,000 of the smallest stocks from the Russell 3000 Index. This index captures about 10% of the total market capitalization of the Russell 3000 Index, providing a broad representation of small-cap U.S. equities. The ProShares Short Russell 2000 ETF is designed to offer a reverse correlation to the performance of these small-cap stocks, making it a tool for investors looking to profit from or protect against downturns in the small-cap sector.
By focusing on the smallest companies within the Russell 3000 Index, the ProShares Short Russell 2000 ETF allows investors to gain exposure to the lower end of the market capitalization spectrum. The ETF employs various financial instruments, such as derivatives, to achieve its inverse exposure objective. This strategic approach is aimed at delivering returns that are opposite to the daily movements of the Russell 2000 Index, making it suitable for investors with a bearish outlook on small-cap stocks.
The ProShares Short Russell 2000 ETF is non-diversified, concentrating its investments in instruments that provide inverse exposure to the Russell 2000 Index. This concentration reflects its focus on delivering performance that inversely tracks the small-cap segment of the market. As such, it serves as a specialized investment vehicle for those seeking to hedge against potential declines in small-cap equities or to capitalize on expected market corrections within this segment.
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