ProShares on Wednesday listed a new inverse currency ETF designed to profit when the euro moves lower.
The ETF manager already oversees a popular ETF that provides leveraged bearish exposure to the common currency.
The new fund is ProShares Short Euro (EUFX - News) , which is designed to provide 100% of the inverse, or opposite, return of the U.S. dollar price of the euro, on a daily basis. It has an expense ratio of 0.95%.
“We are launching EUFX in response to investor requests for an additional variation of an ETF with inverse exposure to the euro,” Sapir said in a press release.
Leveraged and inverse ETFs are designed for traders rather than buy-and-hold investors. [Primer on Leveraged and Inverse ETFs]
The new inverse euro ETF will likely compete with PowerShares DB US Dollar Index Bullish (UUP - News), which holds $1.2 billion in assets. UUP tracks the U.S. dollar’s movement against a basket of currencies: euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. However, EUFX specifically targets the dollar/euro currency cross.
ProShares UltraShort Euro