SEC Approves 12 ETFs by ProFunds

May 25, 2006 ( - The US Securities and Exchange Commission (SEC) has approved a plan by Maryland-based ProFunds to offer 12 new exchange-traded funds (ETFs).

The funds include leveraged ETFs. According to Reuters, the new funds, which would be known as ProShares, will offer double the daily performance of a market index, or double the opposite daily move of an index. Four of the 12 will not use leverage but will seek to offer the inverse daily move of an index.

ETFs, which are traded throughout the day, have been experiencing rapid growth. But leveraged ETFs would use borrowing, futures contracts, forward contracts, options and other techniques.

According to SEC filings, the company has signed licensing agreements to use indices such as the Dow Jones Industrial Average, Reuters reported.