ProShares launches first two ETFs linked to natural gas futures

By Toni Weeks

San Diego, Oct. 6 - ProShares has launched the ProShares Ultra DJ-UBS Natural Gas (NYSE: BOIL) and ProShares Ultrashort DJ-UBS Natural Gas (NYSE: KOLD) exchange-traded funds, according to a press release.

While the ProShares Ultra DJ-UBS Natural Gas ETF seeks to provide 2x the daily performance of the Dow Jones-UBS Natural Gas Subindex before fees and expenses, ProShares UltraShort DJ-UBS Natural Gas seeks to provide negative 2x the daily performance of the same subindex. The ETFs list on NYSE Arca Thursday.

"There has been strong demand for geared commodity ETFs, as investors have come to recognize the importance of commodities as part of their alternatives allocation," Michael L. Sapir, chairman and chief executive officer of ProShares Capital Management, the sponsor of the funds, said in the release. "We are pleased to introduce the first geared ETFs designed to help investors manage risk or act on their views on natural gas."

The launch of the two ETFs expands ProShares' lineup of geared commodity ETFs to 10. Sectors covered include silver, gold, crude oil, broad commodities and, with the two new ETFs, natural gas.

Based in Bethesda, Md., and part of ProFunds Group, ProShares offers the largest family of leveraged and inverse exchange-traded funds. The company's short or ultra ETFs seek returns that are 3x, 2x, minus 1x, minus 2x or minus 3x the return of an index or other benchmark for a single day, as measured from one net asset value calculation to the next.

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