ProShares Launches New Bond ETF

March 29, 2011 ( - ProShares announced the launch of what it says is the first exchange-traded fund (ETF) in the United States that provides inverse exposure to the investment grade corporate bond market.

The ProShares Short Investment Grade Corporate (NYSE Arca: IGS) seeks to provide -1x the daily performance of the Markit iBoxx $ Liquid Investment Grade Index, before fees and expenses.   

“There are signs that investment grade corporate bonds could possibly be richly valued relative to historical levels. Since the financial crisis, investment grade corporate bond indexes have reached record highs, and credit spreads have tightened significantly,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares’ investment adviser, in the announcement. “For investors who believe that investment grade corporates could come under pressure, IGS can be used to help hedge against or to seek to benefit from potential declines.”  

IGS expands ProShares’ lineup of inverse bond ETFs to six (see ProShares Launches Inverse High Yield Bond ETF).