The ProShares Short Real Estate ETF (REK) is managed by ProShare Advisors and is designed to provide daily inverse exposure to the performance of the Dow Jones U.S. Real Estate Index. ProShare Advisors employs a mathematical approach to determine the investment positions necessary to achieve daily returns that are inverse (-1x) to the returns of the Index for the same day. The ETF primarily achieves this through the use of derivatives, including swap agreements with major global financial institutions, and short-term cash instruments such as U.S. Treasury Bills and repurchase agreements. The fund aims to deliver inverse results for a single day, and its daily rebalancing strategy can lead to returns that differ from the inverse of the Index's performance over longer periods. As of May 31, 2022, the Index was concentrated in the real estate industry group.
The ProShares Short Real Estate ETF (REK) is primarily designed to provide investors with inverse exposure to the daily returns of the Dow Jones U.S. Real Estate Index. While dividends are not the primary focus of this ETF, dividend distribution is influenced by the constituent companies' individual dividend policies within the index. The index typically consists of real estate investment trusts (REITs) and companies involved in real estate development, management, or ownership. Dividend eligibility and distribution may vary among these constituents, but the ETF aims to provide inverse returns to the index, making it suitable for investors seeking short-term inverse exposure to the real estate sector while potentially benefiting from any dividend income generated within the index.
The ProShares Short Real Estate ETF (REK) aims to achieve daily returns that are inverse (-1x) to the performance of the DJ US Select Real Estate Securities Index (DJUSRE). This ETF utilizes financial instruments such as swap agreements to achieve its objective, effectively allowing investors to bet against the real estate sector on a daily basis. REK seeks to provide investors with a tool for hedging or speculating on short-term movements in the real estate market, but it is important to note that its returns over periods longer than a single day may vary due to daily rebalancing and compounding effects.
The correlation aspect of the ProShares Short Real Estate ETF (REK) primarily revolves around its daily inverse exposure to the Dow Jones U.S. Real Estate Index. Since REK aims to deliver daily returns that are inverse (-1x) to the returns of the Index, its correlation with the real estate market is expected to be inverse as well. Investors often utilize REK as a tool for short-term hedging and tactical strategies to profit from declining real estate markets. To delve deeper into REK's correlation and its implications, you can leverage the ETF Insider web app, which provides comprehensive insights and visualization tools for studying correlations and overlaps with other US ETFs.
The ProShares Short Real Estate ETF (REK) focuses on providing investors with daily returns that are inverse (-1x) to the performance of the Dow Jones U.S. Real Estate Index. This index is designed to track the performance of real estate investment trusts (REITs) and other companies involved in the real estate industry, including property agencies, development, management, or ownership. REK offers a way for investors to gain short exposure to this sector, which can be useful for hedging against potential declines in real estate markets or for making tactical bets on market reversals. However, it's important to note that the fund is designed for short-term trading, and its returns may differ significantly from the inverse of the index's performance over longer periods due to daily rebalancing and compounding effects.
The ProShares Short Real Estate ETF (REK) is designed to provide investors with inverse exposure to the performance of real estate investment trusts (REITs) and other companies involved in the real estate industry. REK achieves this by employing a mathematical approach and derivative instruments to seek daily returns that are inverse (-1x) to the returns of its underlying index. This ETF''s exposure is focused on tracking the daily movements of the DJ US Real Estate Index, making it an effective tool for investors looking to profit from declines in the real estate sector. For detailed exposure data and insights into its correlation with other assets, ETF Insider''s web app offers a valuable resource for analyzing REK and similar ETFs.
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