The ProShares Short MSCI EAFE ETF (EFZ) is managed by ProShare Advisors and aims to provide daily returns that are inverse (-1x) to the returns of the MSCI EAFE Index, excluding the U.S. and Canada. ProShare Advisors utilizes a mathematical approach to select and maintain the investment positions within the fund to achieve this objective. EFZ invests in a combination of financial instruments, including derivatives and money market instruments, to mirror the inverse performance of the Index. This ETF is designed for investors seeking short exposure to developed market countries outside the U.S. and Canada and can be used as a tactical tool in their investment strategy.
The ProShares Short MSCI EAFE ETF (EFZ) is designed to produce daily returns that are inverse (-1x) to the returns of the MSCI EAFE Index, excluding the U.S. and Canada. While this ETF primarily focuses on providing inverse exposure to the Index for a single day, it does not emphasize dividend distribution as its main objective. Dividends for EFZ are influenced by the underlying securities held within the Index, and investors should be aware that they may not receive consistent or significant dividend income from this ETF. ProShare Advisors employs a mathematical approach to its investment strategy, aiming to maintain inverse exposure to the Index's daily returns without regard to dividend payments or market conditions. Therefore, EFZ may not be suitable for investors seeking regular dividend income.
The ProShares Short MSCI EAFE ETF, represented by the ticker symbol EFZ, aims to achieve daily returns inversely correlated with the MSCI EAFE Index. The fund employs a mathematical approach to investment, determining the type, quantity, and mix of positions necessary to produce daily returns that are the inverse (-1x) of the MSCI EAFE Index's daily returns. EFZ primarily achieves this through derivatives, such as swap agreements, which enable it to gain inverse exposure to the index without directly shorting individual stocks. Additionally, the fund may hold money market instruments like U.S. Treasury Bills and Repurchase Agreements to manage cash positions effectively. EFZ's daily rebalancing strategy ensures that its portfolio's exposure aligns with its objective, but investors should be aware that the fund's returns can differ from the inverse of the index's performance over longer periods due to compounding and market conditions. Moreover, EFZ may concentrate its investments in industries or regions to a similar extent as the index, potentially increasing exposure to specific sectors. It's essential for investors to understand the associated risks and consult the fund's Prospectus for detailed information.
The correlation aspect of the ProShares Short MSCI EAFE ETF (EFZ) can be quite distinct due to its investment strategy. EFZ seeks to provide daily returns that are inversely correlated to the MSCI EAFE Index, which covers developed market countries, excluding the U.S. and Canada. As a result, EFZ tends to have a strong negative correlation with the performance of international equities. This inverse correlation makes EFZ an attractive tool for investors looking to hedge or profit from declines in international markets.
The ProShares Short MSCI EAFE ETF (EFZ) is primarily focused on the international developed market sector, excluding the United States and Canada. It aims to provide daily returns that are inverse (-1x) to the returns of the MSCI EAFE Index, which covers approximately 85% of the free float-adjusted market capitalization in developed market countries. As of June 30, 2022, this index consisted of 21 developed market country indexes, including countries like Japan, the United Kingdom, France, and Germany. EFZ achieves its objective through the use of derivatives and money market instruments, making it a tool for investors looking to hedge against or profit from declines in international developed markets. However, due to its daily rebalancing and compounding effects, the Fund's returns over periods longer than a single day may differ significantly from the inverse of the Index's performance. Additionally, EFZ may concentrate its investments in specific industries or regions to the same extent as the Index, which, as of May 31, 2022, was focused on the financials and industrials industry groups, along with a focus on Japan and the United Kingdom. Please refer to the Fund's Prospectus for more information on its investment objectives, principal strategies, and related risks.
The exposure characteristics of the ProShares Short MSCI EAFE ETF (EFZ) are unique, as this ETF aims to provide investors with inverse exposure to the MSCI EAFE Index, excluding the U.S. and Canada. This means that EFZ seeks to benefit when the MSCI EAFE Index experiences declines, making it a useful tool for investors looking to hedge against potential downturns in international markets. EFZ primarily invests in derivatives and money market instruments to achieve its daily investment objective, offering a distinct approach to market exposure.
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