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About ProShares Merger ETF
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Inception date
Dec 11, 2012
Structure
Open-Ended Fund
Distributes
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Tax on distributions
Ordinary income
Primary advisor
ProShare Advisors LLC
Distributor
SEI Investments Distribution Co.
MRGR employs a straightforward merger arbitrage strategy, which capitalize on the spread between the target companys current market stock price and the merger deal price. The fund tracks an S&P index that bets on the performance of stocks from developed countries that are in active pending merger deals based on a risk arbitrage strategy. Up to 40 target companies represents the long positions in the index, and up to 40 acquiring companies for the same merger deals represents short positions. MRGR gets additional long exposure, and all of its short exposure, with swaps. The funds long and short position have an initial 120% maximum exposure each, but its net exposure is limited to 0-100% range. Treasury bill components constitutes the remainder of the portfolio when net exposure is less than 100%. The fund hedges out its exposure relative to the US dollar.
Classification
What's in the fund
Exposure type
Finance
Cash
Stocks75.31%
Finance15.96%
Technology Services9.73%
Consumer Services7.60%
Electronic Technology7.29%
Non-Energy Minerals5.00%
Health Technology4.85%
Utilities4.68%
Commercial Services4.60%
Process Industries3.91%
Transportation2.44%
Consumer Non-Durables2.42%
Retail Trade2.41%
Distribution Services2.36%
Communications2.04%
Bonds, Cash & Other24.69%
Cash22.17%
Corporate2.52%
Displays a symbol's price movements over previous years to identify recurring trends.