The ProShares Short Russell2000 ETF (RWM) is managed by ProShare Advisors and is designed to provide daily returns that are inversely correlated to the performance of the Russell 2000 Index, which measures the performance of small-cap U.S. stocks. The Russell 2000 Index consists of approximately 2,000 of the smallest companies in the Russell 3000 Index, representing about 10% of the total market capitalization of the Russell 3000 Index. ProShare Advisors employs a mathematical approach to achieve its daily investment objective, primarily using derivatives such as swap agreements and futures contracts. RWM offers investors a way to potentially profit from short-term declines in small-cap stocks and can serve as a hedging tool in volatile market conditions.
The RWM Dividend is reflective of the dividend distribution of the ProShares Short Russell 2000 ETF (RWM). While the primary objective of this ETF is to provide inverse exposure to the daily returns of the Russell 2000 Index, it's essential to note that dividend eligibility and distribution are not the primary focus. The ETF primarily invests in financial instruments and derivatives to achieve its daily investment goal, and dividend distributions, if any, will be influenced by the underlying securities' dividend policies. Investors interested in RWM should primarily consider its inverse exposure characteristics rather than relying on it for dividend income.
Tracking the Russell 2000 Index is at the core of the ProShares Short Russell 2000 ETF's strategy. RWM aims to provide daily returns that are inverse (-1x) to the returns of the Russell 2000 Index for a single day. The ETF achieves this goal through a combination of financial instruments, including swap agreements and futures contracts, as well as short-term cash instruments like U.S. Treasury Bills and repurchase agreements. ProShare Advisors employs a mathematical approach to position the fund's portfolio daily, ensuring it maintains inverse exposure to the Index, regardless of market conditions. It's essential to note that the Fund seeks investment results for a single day only and may differ from the inverse (-1x) of the Index's return over longer periods due to daily rebalancing and compounding effects.
The correlation aspect of the ProShares Short Russell 2000 ETF (RWM) is primarily centered on its daily returns and the Russell 2000 Index. Given its investment objective to seek daily returns that are inverse (-1x) to the returns of the Russell 2000 Index, RWM typically exhibits a strong inverse correlation with the index. This makes RWM an attractive tool for investors looking to hedge against small-cap U.S. stock market downturns or to profit from short-term declines in the Russell 2000. The ETF Insider web app provides comprehensive insights into RWM's correlation with the index and offers users the ability to visualize this relationship, helping investors make informed decisions about their portfolios.
The ProShares Short Russell 2000 ETF (RWM) primarily invests in financial instruments that aim to produce daily returns inversely correlated to the Russell 2000 Index, which measures the performance of small-cap U.S. stocks. RWM utilizes derivatives, such as swap agreements and futures contracts, to achieve its objective. By providing a single-day inverse exposure to the index, RWM is designed for investors seeking to hedge against potential downturns in the small-cap stock market or to profit from short-term declines in these stocks. However, it's essential to note that this ETF may not perfectly track the inverse performance of the Russell 2000 Index over extended periods due to daily rebalancing and compounding effects.
The exposure characteristic of the ProShares Short Russell 2000 ETF (RWM) is designed to provide investors with daily inverse exposure to the Russell 2000 Index. This ETF aims to deliver returns that move in the opposite direction to the small-cap U.S. stock market performance. By utilizing derivatives and financial instruments, RWM offers a tactical approach for investors seeking to hedge against potential downturns in small-cap stocks. For a deeper understanding of RWM''s exposure and its correlation to the Russell 2000 Index, investors can turn to the ETF Insider web app, which provides comprehensive insights and data visualization tools for analyzing U.S. ETFs.
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