ProShares launches new ETF that tracks bonds of S&P 500 companies

By Sarah Lizee

Olympia, Wash., May 3 – ProShares announced the launch of the ProShares S&P 500 Bond ETF, which tracks the S&P 500/MarketAxess Investment Grade Corporate Bond index.

The fund offers exposure to the most liquid, high-quality bonds issued by companies in the S&P 500 stock index, according to a press release.

ProShares said the fund is well positioned to help investors embrace the shift from individual bonds and mutual funds to bond ETFs.

“The S&P 500/MarketAxess Investment Grade Corporate Bond Index is a new way to measure the U.S. investment grade corporate bond market,” Jason Giordano, director of fixed income product management at S&P Dow Jones Indices, said.

“The companies represented in the index, constituents from the iconic S&P 500, are typically well capitalized and their bonds historically trade more frequently than the broader U.S. corporate bond landscape.”

Out of the nearly 5,000 investment grade quality bonds issued by S&P 500 companies, the S&P 500/MarketAxess Investment Grade Corporate Bond index selects up to 1,000 of the most liquid bonds.

To be eligible for the index, bonds must be investment grade credit quality U.S. issues. Bonds with a maturity at first issuance under 2½ years or a par value of less than $750 million are excluded.

Those that meet the criteria are then ranked by liquidity, as measured by each bond’s 60-day trading day average volume as reported by Trace, in descending order.

ProShares is an investment adviser based in Bethesda, Md.

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