ProShares, a premier provider of alternative exchange traded funds, today announced the launch of the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ), the first ETF providing “pure-play” exposure to infrastructure.
“Infrastructure investment has become attractive because of growing global demand, increasing opportunities for private sector investment, and high barriers to entry that limit competition,” said Michael Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares’ investment advisor. “We are pleased to offer the first ETF that invests exclusively in companies whose primary business is the ownership and operation of infrastructure.”
About the Index
TOLZ tracks the Dow Jones Brookfield Global Infrastructure Composite. Its pure-play approach focuses on companies whose assets include airports, toll roads, ports, communications, electricity distribution, oil and gas storage and transport, and water in both developed and emerging markets. To be included in the index, companies must derive more than 70% of their cash flows from infrastructure assets. The index excludes companies that supply services such as construction and engineering to the infrastructure industry.
Since its 2008 inception, the index has generated better returns with lower volatility than both the S&P 500 and the MSCI World Index.1
Offering the nation's largest lineup of alternative ETFs, ProShares helps investors to go beyond the limitations of conventional investing and face today’s market challenges. Each ProShares ETF provides access to an alternative investment strategy delivered with the liquidity, transparency and cost effectiveness of an ETF. ProShares' lineup of 145 ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged and inverse), and Inflation and Volatility ETFs.
1From its 7/14/2008 inception through 12/31/2013, TOLZ’s index outperformed both the S&P 500 and the MSCI World Index with lower standard deviation. Source: Bloomberg and Morningstar.
ProShares has the largest lineup of alternative ETFs in the United States according to Financial Research Corporation ("FRC"), based on analysis of all the known alternative ETF providers (as defined by FRC) by their number of funds and assets (as of 3/31/2013).
Investing involves risk, including the possible loss of principal. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. This ProShares ETF entails certain risks, which may include imperfect benchmark correlation and market price variance, that can increase volatility and decrease performance. This ETF is subject to risks faced by companies in the infrastructure, energy and utilities industries to the same extent as the Dow Jones Brookfield Global Infrastructure Composite Index is so concentrated. This ETF invests in master limited partnerships (MLPs). Investments in MLPs expose the ETF to certain tax risks associated with investing in partnerships. Changes in U.S. tax laws could revoke the pass-through attributes that provide the tax efficiencies that make MLPs attractive investment structures. MLPs may also have limited financial resources, may be relatively illiquid, and may be subject to more erratic price movements because of the underlying assets they hold. In addition, a portion of the ETF’s distributions may be a return of capital, which constitutes the return of a portion of a shareholder’s original investment. Under tax rules, returns of capital are generally not currently taxable, but lower a shareholder’s tax basis in their shares. Such a reduction in tax basis will result in larger taxable gains and/or lower tax losses on a subsequent sale of shares. International investments may involve risks from: geographic concentration, differences in valuation and valuation times, unfavorable fluctuations in currency, differences in generally accepted accounting principles, and from economic or political instability. In emerging markets, all of these risks are heightened, and lower trading volumes may occur. There is no guarantee any ProShares ETF will achieve its investment objective.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.
The “Dow Jones Brookfield Global Infrastructure Composite” Index is a product of S&P Dow Jones Indices LLC and its affiliates and has been licensed for use by ProShares. “S&P®” is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones®” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. ProShares have not been passed on by S&P Dow Jones Indices LLC and its affiliates as to their legality or suitability. ProShares based on the Dow Jones Brookfield Global Infrastructure Composite Index are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.
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