ProShares lists leveraged and inverse bank ETFs

ProShares has partnered with KBW bank to create ETFs providing leveraged or inverse exposure to the regional banking sector.

The ETFs, listed on NYSE Arca in the US, are designed to provide two times leveraged or the inverse performance of the KBW Regional Banking index on a daily basis.

The underlying benchmark tracks US regional banking stocks, and is managed by KBW.

ProShare Advisors CEO Michael Sapir says: "Many investors follow regional banking stocks and these ETFs provide them with additional tools to act on their views."

KBW operates in banking, insurance, brokerage, asset management, mortgage banking and speciality finance sectors.

ProShares, part of ProFunds Group, specialises in leveraged and inverse funds. The firm first introduced leveraged and inverse ETFs in the US in 2006.

ProShares warns leveraged funds provide a magnified return of an index for a single day. Daily returns are compounded, whereby the index resets and is calculated each day from the closing value from the previous day.

As a result, leveraged ETFs may not return the stated leveraged amount if held for longer than one day.