ProShares, the largest issuer of inverse and leveraged exchange-traded funds, is making changes to some its ETFs ahead of the separation of real estate into its own sector at the end of August.
Real Estate Separation
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In 2014 index providers MSCI and Standard & Poor's announced that real estate will be separated from the financial services sector, becoming the eleventh GICS sector in the process. With financial services funds preparing to drop real estate stocks, the UltraPro Financial Select Sector (ProShares Trust (NYSE:FINU)) and the UltraPro Short Financial Select Sector (ProShares Trust (NYSE:FINZ)) will start tracking the S&P Financial Select Sector Index, which excludes real estate stocks.
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That change goes into effect after the close of business on September 16, 2016, according to a statement from Maryland-based ProShares.
The ProShares S&P 500 Ex-Financials ETF (NYSE:SPXN), an ETF that as its name implies excludes financial services stocks, will start tracking the S&P 500 Ex-Financials and Real Estate Index as a result of real estate becoming its own sector. However, the index constituents and SPXNs portfolio will remain the same, according to ProShares.
Looking Toward Europe
The ProShares Ultra MSCI Europe (NYSE:UPV) and the ProShares UltraShort FTSE Europe ETF (NYSE:EPV) will move to the FTSE Developed Europe All Cap Index from the FTSE Developed Europe Index.
Additionally, ProShares announced the closure of nine ETFs, which cease taking orders after the close of business on August 25.
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