The communication services sector, the newest sector in the S&P 500, will soon be getting corresponding leveraged exchange traded funds.
ProShares, the largest issuer of inverse and leveraged ETFs, said it expects to launch four leveraged communication services funds this week.
What Happened
Following a 2017 decision by index providers MSCI Inc. and Standard & Poor's, the communication services sector officially debuted in the third quarter of 2018.
The sector, the fourth-largest sector weight in the S&P 500 at 10.37 percent, is comprised of some traditional telecommunication stocks as well as companies that previously resided in the consumer discretionary and technology sector.
Why It's Important
Maryland-based ProShares is looking to introduce the following leveraged communication services ETFs this week:
- Ultra Communication Services Select Sector ETF (XCOM)
- UltraPro Communication Services Select Sector ETF (UCOM)
- UltraShort Communication Services Select Sector ETF (YCOM)
- UltraPro Short Communication Services Select Sector ETF (SCOM)
All of the new ProShares ETFs will provided leveraged or inverse leveraged exposure to the S&P Communication Services Select Sector and all four will trade on the New York Stock Exchange.
XCOM and UCOM will provide double- and triple-leveraged exposure to the S&P Communication Services Select Sector while YCOM and SCOM are inverse leveraged funds, providing double and triple inverse leveraged exposure to that index.
The $3.06 billion SPDR Communication Services Select Sector ETF (NYSE:XLC), the first ETF dedicated to the sector, tracks the Communication Services Select Sector Index.
What's Next
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