ProShares Hedge Replication ETF (PRO1)

Overview

The fund is an investment vehicle that aims to replicate the performance of a specified benchmark, which is designed to mimic the risk and return characteristics of the hedge fund asset class. This objective is pursued through a strategic investment in financial instruments selected by ProShare Advisors. The chosen benchmark for this endeavor is the HFRI Fund Weighted Composite Index (the "HFRI"), a comprehensive index reflecting the performance of the hedge fund industry by aggregating over 2000 constituent hedge funds into an equally weighted composite. This approach positions the fund as a unique offering for investors looking to gain exposure to the hedge fund sector without directly investing in hedge funds themselves. Notably, the fund operates with a non-diversified investment strategy, focusing its resources on the instruments it believes will best track the performance of the HFRI.

Products and Services

• HFRI Tracking Investments

The primary service offered by the fund is the opportunity to invest in a portfolio designed to track the HFRI Fund Weighted Composite Index. This is achieved through the selection of financial instruments that, when combined, are believed by ProShare Advisors to mirror the performance of the HFRI. The index itself represents a wide array of over 2000 constituent funds, providing an encompassing view of the hedge fund industry's performance. By investing in this fund, clients gain exposure to the varied and dynamic world of hedge funds, encapsulated within a single, accessible investment vehicle.