DEFINITION of 'ProShares'

A division of ProFunds Group that manages short and leveraged investment funds that trade on various stock exchanges. These funds are designed to allow investors to take hedging and speculative positions without having to purchase derivatives. ProShares trade like any other ETF and can be purchased and sold like stocks.


ProShares offers dozens of different ETF products, all designed to perform specific speculative investment strategies. They are divided into three categories: short, ultra and alpha. Short ProShares behave inversely to the market, while Ultra ProShares amplify market performance by a factor of two. The Alpha fund tracks the performance of the Credit-Suisse Index.

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  6. Exchange-Traded Mutual Funds (ETMF)

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  1. What are the most common leveraged ETFs that track the drugs sector?

    The most common leveraged exchange-traded funds (ETFs) that track the pharmaceutical industry are the two offered by Proshares: ... Read Full Answer >>
  2. Are there leveraged ETFs that track the banking sector?

    A number of exchange-traded funds (ETFs) track the banking sector. Among them are ProShares Ultra KBW Regional Banking, ProShares ... Read Full Answer >>
  3. Are there leveraged ETFs that track the financial services sector?

    An exchange-traded fund (ETF) is a security that follows an index (or a set group of commodities or assets) but trades the ... Read Full Answer >>
  4. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  5. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  6. What does a high turnover ratio signify for an investment fund?

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