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ProShares Launches ETFs That Reset Daily—So You Don't Have To Panic When Markets Are Choppy

Benzinga·07/01/2025 20:33:37
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ProShares introduced a set of ETFs on June 26 that protect investors from daily market losses while providing exposure to potential gains. The funds, ProShares S&P 500 Dynamic Buffer ETF (BATS:FB), ProShares Nasdaq-100 Dynamic Buffer ETF (NASDAQ:QB), and ProShares Russell 2000 Dynamic Buffer ETF (BATS:RB), each have an expense ratio of 0.58%.

FB holds 503 big-cap stocks with a mean market cap of $105.8 billion; QB holds 101 technology-dominant companies, averaging $299.1 billion in market cap; RB follows 1,929 small-cap stocks, averaging $1.3 billion in market cap.

Also Read: Can You Profit When Markets Sink? Innovator’s New ETFs Say Yes

No More One-Year Lock-In

What sets these ETFs apart, according to ProShares, is a new buffer strategy that doesn't require investors to hold the fund for a full year to get downside protection—something traditional buffer ETFs typically demand. Instead, these funds reset daily.

The funds employ a patent-pending methodology that pairs daily long exposure to the target index with long and short options to expire daily. The system automatically varies protection levels based on projected market volatility. For any given day, the funds seek to protect against the first 1% to 5% of losses and permit gains up to a limit.

When market volatility increases, both the potential downside protection and the possible upside limit move higher.

Riding The Buffer Boom

Buffer ETFs have gained popularity, and BlackRock projects the cohort to grow to $650 billion in assets by 2030, according to Bloomberg. However, many of the current products are best suited for holding a set term, in many cases, a year, exposing investors to timing risk.

Conversely, these new ETFs provide a rolling, day-to-day design intended to curb such uncertainty.

ProShares, which oversees more than $80 billion in assets, is marketing these ETFs as vehicles for investors seeking a smoother ride in turbulent markets, without the catch of long-term holding requirements.

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