SJB Profile
The ProShares Short High Yield ETF aims to achieve its investment objective by utilizing a variety of financial instruments to produce daily returns that align with its strategy. The fund's approach involves investing in instruments that are expected to provide returns consistent with its goal of shorting high-yield corporate bonds. This strategy is designed to deliver performance inversely related to the performance of the high-yield bond market, providing a hedge against declines in this sector.
The ETF tracks an index that is specifically crafted to represent the U.S. dollar-denominated high-yield corporate bond market. This index is weighted by market value and is designed to capture a balanced view of the high-yield bond market. It includes the most liquid high-yield corporate bonds available for sale within the U.S., as determined by a set of transparent and objective rules. The index's methodology ensures that the bonds included are selected based on their liquidity and market presence, providing a comprehensive snapshot of the high-yield bond market.
The fund's investment strategy involves leveraging various financial instruments, including derivatives and other securities, to achieve its inverse performance objective relative to the high-yield bond index. This approach allows the fund to profit from declines in the value of high-yield corporate bonds. By employing a combination of these instruments, the ETF seeks to offer investors an effective way to hedge against potential losses in high-yield bond investments or to take advantage of anticipated declines in the high-yield market.
As a non-diversified fund, the ProShares Short High Yield ETF does not aim to spread its investments across a wide range of asset classes or sectors. Instead, it focuses on a specific strategy involving high-yield corporate bonds, targeting a precise aspect of the bond market. This targeted approach is designed to provide investors with a specialized tool for managing risk or capitalizing on movements within the high-yield bond market.
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