ProShares plans ProShares USD Covered Bond exchange-traded fund

By Toni Weeks

San Diego, Dec. 16 - ProShares Trust is planning to launch the ProShares USD Covered Bond, a new exchange-traded fund that will track the performance of the USD Covered Bond Index, according to an N-1A filing with the Securities and Exchange Commission.

The index seeks to track the performance of dollar-denominated, fixed-rate covered bonds and aims to include those in its portfolio that have been rated in the highest category in each of Fitch Investor Services', Moody's Investor Services' and Standard & Poor's Rating Group's rating categories as well as meet specific other criteria.

In normal circumstances, the fund will invest at least 80% of its total assets in covered bonds but may also invest in other securities and/or derivates that the fund's adviser, Bethesda, Md.-based ProShare Advisors, believes will track the performance of the index.

Michelle Liu will be the fund's portfolio manager. At ProShares, Liu has been a portfolio manager since 2009 and was an associate portfolio manager from 2007 to 2009. Prior to that, she was employed by FINRA, where she held a senior market operations analyst position from 2006 to 2007 and a fixed-income domain lead/specialist position from 2004 to 2006.

Annual fund operating expenses for the fund have not yet been published.

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