About Opening An Account
About ProFunds Services
About Indexing
About the ProFunds
About the Classic ProFunds
About the Inverse ProFunds
About the UltraSector ProFunds
About the Ultra ProFunds
About the Currency/Bond Benchmarked ProFunds
About Opening An Account
How can I invest in ProFunds?
Please visit our How to Buy ProFunds page for full details.
How much money do I need to open an account?
A minimum investment of $5,000 is required for discretionary accounts controlled by a financial professional. A minimum investment of $15,000 is required for self-directed accounts controlled directly by investors. ProFund shares sold through brokerages may have lower minimum investment requirements. Please check directly with these brokerages for the specific amounts.
About ProFunds Services
What is PaperFree and how does it work?
PaperFree allows ProFunds shareholders to view and print their transaction confirmations, quarterly statements, prospectuses / reports and other fund documents online, while eliminating the clutter of the paper copies. PaperFree will store seven years' worth of statements (the last 120 days for confirmations)—so you don't have to!
You can sign-up for PaperFree within ProFunds Account Access. As documents become available online, we'll send you e-mail notifications to access those documents on our website. (For security reasons, your documents will not be sent via e-mail.)
If you decide to change your PaperFree options back to paper (mail), log on to ProFunds Account Access and update your mailing preferences.
Is the automatic investment program available for non-retirement accounts?
Automatic investments may be established for regular accounts by completing the Authorization for Optional Services Form. The minimum is $100 and the frequency options are monthly, twice a month, quarterly or annually.
Can I elect to not receive transaction confirmation statements?
ProFunds can suppress the shareholder copy of confirmations only if you are a client of a financial professional. You should submit a letter of instruction to ProFunds requesting that your confirmations be stopped (this will not affect copies sent to your financial professional). You will continue to receive quarterly statements summarizing account activity.
How can I change the beneficiary information on my IRA account?
Changing beneficiary information on an account must be done in writing. You should complete a Designation of Beneficiary for Retirement Plan Account Form.
How do I send money via wire transfer?
Call ProFunds at (888) 776-3637 (toll-free) or (614) 470-8122. Inform ProFunds of your account number, the amount to be wired, and the ProFund(s) in which you wish to invest. You will then be given a confirmation number and wire instructions for your purchase order.
After receiving your confirmation number and wire instructions, contact your bank to initiate the transfer of money by wire. Please include the following information with the wire:
For further credit to: Your name, the name of the ProFund(s), and your ProFunds account number.
Confirmation number: The confirmation number given to you by the ProFunds' representative.
Instructions, written or telephonic, given to ProFunds for wire transfer requests do not constitute a transaction request in good order until the wire transfer has been received by ProFunds. ProFunds is not responsible for transfer errors by the sending or receiving bank. Investment instructions provided to ProFunds may be cancelled if the wire transfer is not received by 3:30 p.m. Eastern time. ProFunds will not be liable for any loss incurred due to a wire transfer not having been received.
Although ProFunds does not charge for wire receipt, your bank may charge a fee to send or receive wires.
About Indexing
How does an index fund work?
An index fund seeks to replicate the performance of a specific stock index, such as the S&P 500® Index, by mirroring its composition.
What are the advantages of investing in an index fund?
Index funds are a rational and economical way to invest in the stock market. With an index fund you get instant diversification — one of the primary reasons to invest in a mutual fund in the first place. That means exposure to a broad section of the market, rather than to the somewhat smaller number of companies represented in the typical mutual fund. You also may know what to expect from your index fund, based on the performance of its benchmark.
Are there any disadvantages of investing in a conventional index fund?
The biggest disadvantage is the lack of opportunity to earn a return greater than the change in the index. In other words, you'll rarely ''beat the market,'' and conventional index funds don't offer a means to make money in down markets or hedge a portfolio against a market decline. In addition, most conventional index funds limit your ability to actively exchange fund shares.
About the ProFunds
How are ProFunds different from conventional index funds?
Ultra and UltraSector ProFunds seek daily returns that magnify the index they track.
Inverse ProFunds seek performance that either matches or magnifies the inverse of their respective indexes.
Currency/Bond Benchmarked ProFunds provide exposure to the U.S. Dollar Index® (USDX®) and certain U.S. Treasury securities, respectively.
Finally, all ProFunds, including the Classic ProFunds, offer a level of flexibility that is both rare to mutual funds and sometimes critical to successful investing. Keep in mind that exchanges can have tax consequences.
There are other factors to consider, such as leverage and compounding, when purchasing ProFunds. More details can be found in the prospectus.
Who invests in ProFunds?
- Investors who want to actively manage their mutual funds.
- Investors who believe that the value of a certain index will increase over time, and that by investing with the objective of matching or multiplying the index's daily return, they will achieve improved results.
- Investors who want to hedge against anticipated declines in other holdings. They share a higher tolerance for risk than the typical mutual fund investor and also feel that they have the time and expertise needed to actively manage a portfolio.
- Investors who want comparable exposure to a certain index with a smaller investment.
- Investors who desire returns approximating those of a certain index.
- Investors who want to add to their portfolios investments in sectors they believe to have higher than average growth potential.
- Investors who actively ''rotate'' their investments into and out of sectors as market and economic conditions change.
- Investors who are willing to buy a mutual fund that uses aggressive investment techniques.
How many ProFunds are there?
We have 64 ProFunds, the nation's largest lineup of indexed funds1. Visit our ProFiles area to review all of our ProFunds.
¹ Source: Lipper. July 22, 2008. Lipper defines ''Indexed Fund'' as an open-end mutual fund (not an Exchange Traded Fund or ETF) that falls into one of the following subcategories: pure index, enhanced index or index-based. The majority of ProFunds are categorized by Lipper as enhanced index funds.
How can I get a ProFunds prospectus?
You can download a prospectus or call 1-888-PRO-FNDS to have one mailed to you. Please read it carefully before you invest.
What is the difference between Service Class shares and Investor Class Shares?
Investor Class shares do not include a 1% distribution and service fee. They have no entry, exit or transaction fees. They can be purchased directly by investors.
Service Class shares can only be purchased if you are a client of a financial professional. Service Class shares also have no entry, exit or transaction fees, but they include a 1% distribution and service fee.
Other fees and expenses do apply to a continued investment in the funds and are described in the funds' current prospectus.
Do the ProFunds always exactly track the performance of their indexes?
No, although the ProFunds met their investment objectives last year with a relatively high degree of statistical correlation. It is important to remember that past performance is no guarantee of future results, and there is no guarantee that any ProFund will meet its investment objectives.
The ProFunds compound daily, and because of the way compounding works, returns for periods longer than one day often do not reflect the daily investment objective.
Are there special risks involved with ProFunds?
The leverage techniques we use in some ProFunds magnify gains and losses and result in greater volatility than conventional index funds. Basically, the Ultra, UltraSector, some Bond Benchmarked and some Inverse ProFunds accelerate gains and losses. Also, our Inverse ProFunds should experience losses if the benchmark index rises. More details about ProFunds' risks can be found here. In addition, see the prospectus complete information about the risks of investing in ProFunds.
About the Classic ProFunds
What are the Classic ProFunds?
Classic ProFunds are the closest to what you might call ''traditional'' index funds. They seek to provide daily investment results, before fees and expenses, that match (100%) the daily performance of their benchmark indexes.
So, if the S&P 500® goes up by 1% on a particular day, the value of the Bull ProFund seeks to increase by 1% (before fees and expenses). On a day when the S&P 500 declines by 1%, the Bull ProFund should lose 1% (before fees and expenses).
What major indexes are covered by the Classic ProFunds?
Collectively, the Classic ProFunds cover the:
- S&P 500 Index
- S&P MidCap 400 Index
- Russell 2000
- Nasdaq-100
- S&P 500/Citigroup Growth Index
- S&P 500/Citigroup Value Index
- S&P MidCap 400/Citigroup Growth Index
- S&P MidCap 400/Citigroup Value Index
- S&P SmallCap 600/Citigroup Growth Index
- S&P SmallCap 600/Citigroup Value Index
- ProFunds Europe 30 Index
Use the gold menu or the link above to access ProFile pages, which include definitions of each index.
Who invests in Classic ProFunds?
Classic ProFunds may be appropriate for those who want to match the daily performance of a particular index.
And like all ProFunds, Classic ProFunds may be appropriate for active investors. ProFunds does not limit how often an investor may exchange among ProFunds and do not impose any transaction fee when investors buy, sell or exchange a ProFund (other than a $10 wire redemption fee under certain circumstances).
About the Inverse ProFunds
What are the Inverse ProFunds?
The Inverse ProFunds seek to increase in value when the market declines and decrease in value when the market rises — a result that is the opposite of traditional mutual funds.
This means that when the S&P 500® goes down by 1% on a particular day, the Bear ProFund should increase by 1% and the UltraBear ProFund by 2%. Conversely, when the S&P 500 goes up by 1%, the Bear ProFund should decrease by 1% and the UltraBear ProFund by 2%.
What major indexes do the Inverse ProFunds cover?
Collectively, the Inverse ProFunds cover the:
- S&P 500 Index
- S&P MidCap 400 Index
- Russell 2000
- Dow Jones Industrial Average
- Nasdaq-100
Use the gold menu above to access ProFile pages, which include definitions of each index.
Who invests in Inverse ProFunds?
Investors who believe an index will fall and seek to profit from its decline may want to consider the Inverse ProFunds. Investors who want to try to protect their portfolios from Inverse ProFunds can also be used in an attempt to protect a portfolio from a market decline.
And like all ProFunds, Inverse ProFunds may be appropriate for active investors. ProFunds does not limit how often an investor may exchange among ProFunds and do not impose any transaction fee when investors buy, sell or exchange a ProFund (other than a $10 wire redemption fee under certain circumstances).
About the UltraSector ProFunds
What are the UltraSector ProFunds?
UltraSector ProFunds allow you to invest in a particular part of the U.S. economy, such as energy, financial services or semiconductors. Each UltraSector ProFund is benchmarked against a sector index. And, using leverage, each UltraSector ProFund's goal is to produce daily returns that are 150% of the performance of the specified sector index.
Why invest in a sector fund?
Sector funds offer a way to participate in a specific industry or market sector without buying individual stocks in it, and provides the potential for returns higher than those produced by the typical diversified mutual fund. Economic sectors can behave much differently than the market as a whole — and from each other. For instance, when the S&P 500 Index may be down, the energy sector may be up — but the semiconductor sector could be doing even worse than the S&P 500 Index.
Sector funds do not represent a complete investment program because they concentrate investment in a single sector, they are more volatile than many other funds.
Why are UltraSector ProFunds index-based?
We believe that by benchmarking each UltraSector ProFund to a specific sector index, we offer the opportunity for a more pure sector investment than might be the case with conventional, non-indexed sector funds. That's because those funds often give their managers the discretion to pick stocks based on their judgement. They can put some companies in the fund and leave others out. Some can even invest a part of the portfolio in companies outside the sector. With UltraSector ProFunds, you can easily track their performance and check it against the published indexes every day.
What sectors are covered by UltraSector ProFunds?
They include:
- Banks
- Basic Materials
- Biotechnology
- Consumer Goods
- Consumer Services
- Financials
- Health Care
- Industrials
- Internet
- Mobile Telecommunications
- Oil & Gas
- Oil Equipment, Services & Distribution
- Pharmaceuticals
- Precious Metals
- Real Estate
- Semiconductor
- Technology
- Telecommunications
- Utilities
Use the gold menu above to access ProFile pages, which include definitions of each index.
Who invests in UltraSector ProFunds?
By itself, an UltraSector ProFund is not a complete investment program. But many investors use them to increase their portfolios' exposure to a specific economic segment. More active investors may use UltraSector ProFunds to ''rotate'' their investments to perceived strong sectors and out of perceived weak sectors as market and economic conditions change.
What additional risks are involved with investing in UltraSector ProFunds?
UltraSector ProFunds invest in a single industry or market segment. That means it doesn't represent a complete investment program. The shares of an UltraSector ProFund may fluctuate more than those of a fund invested in a broader range of industries and companies. Also, there's no guarantee that a given industry or sector will outperform the broad market. Finally, because UltraSector ProFunds routinely employ leverage in an effort to magnify gains, these same techniques can magnify loss, which can result in greater volatility in value.
How do the UltraSector ProFunds seek to magnify index performance?
By using leverage. Leverage offers a means of magnifying market movements into larger changes in an investment's value and provides greater investment exposure than an unleveraged investment. Leverage should cause a fund to lose more money in market environments adverse to its daily investment objective than a fund that does not employ leverage.
About the Ultra ProFunds
What are Ultra ProFunds?
Unlike traditional index funds that seek to match the daily performance of an index, Ultra ProFunds seek to provide daily investment results, before fees and expenses, that double (200%) the daily performance of their benchmark indexes.
So, if the S&P 500 goes up by 1% on a particular day, the value of the Ultra Bull ProFund should increase by 2%. On a day when the S&P 500 declines by 1%, the Ultra Bull ProFund should lose 2%.
What major indexes are covered by the Ultra ProFunds?
Collectively, the Ultra ProFunds cover the:
- S&P 500 Index
- Dow Jones Industrial Average
- S&P MidCap 400 Index
- Russell 2000
- Nasdaq-100
- Nikkei 225 Stock Average
Use the gold menu above to access ProFile pages, which include definitions of each index.
Who invests in Ultra ProFunds?
Investors who believe an index will rise and seek to increase potential returns may want to consider the Ultra ProFunds. Ultra ProFunds also allow investors to use half the principal they might otherwise invest in a traditional index fund to achieve approximately the same daily investment results.
And like all ProFunds, Ultra ProFunds may be appropriate for active investors. ProFunds does not limit how often an investor may exchange among ProFunds and do not impose any transaction fee when investors buy, sell or exchange a ProFund (other than a $10 wire redemption fee under certain circumstances).
Of course, the Ultra ProFunds may not be appropriate for risk-averse investors since these funds routinely employ leveraged investment techniques that will increase their volatility, and perhaps losses, in an attempt to achieve greater returns.
How do the Ultra ProFunds seek to magnify index performance?
By using leverage. Leverage offers a means of magnifying market movements into larger changes in an investment's value and provides greater investment exposure than an unleveraged investment. Leverage should cause a fund to lose more money in market environments adverse to its daily investment objective than a fund that does not employ leverage.
About the Currency/Bond Benchmarked ProFunds
What are Currency/Bond Benchmarked ProFunds?
Currency/Bond Benchmarked ProFunds provide exposure to the U.S. Dollar Index (USDX) and certain U.S. Treasury securities.
What securities are covered by the Currency/Bond Benchmarked ProFunds?
The benchmark securities of the Currency/Bond Benchmarked ProFunds are the U.S. Dollar Index, most recently issued 30-year U.S. Treasury Bond (''Long Bond''), and 10-year U.S. Treasury Note.
Who invests in Currency/Bond Benchmarked ProFunds?
Rising and Falling U.S. Dollar ProFunds allow investors to take advantage of movements in the value of the U.S. dollar versus foreign currencies.
Both Rising Rates Opportunity ProFund and Rising Rates Opportunity 10 ProFund are designed for investors who want to hedge existing bond investments against the adverse impact of rising rates rather than sell their bond holdings, or investors seeking to profit in a rising rate environment. (For more on the Rising Rates strategy, click here.)
For periods of falling interest rates, you might consider the U.S. Government Plus ProFund. It seeks to provide daily investment results, before fees and expenses, that correspond to 125% the daily performance of the most recently issued Long Bond.
How do certain Currency/Bond Benchmarked ProFunds seek to magnify daily index performance?
By using leverage. Leverage offers a means of magnifying market movements into larger changes in an investment's value and provides greater investment exposure than an unleveraged investment. Leverage should cause a fund to lose more money in market environments adverse to its daily investment objective than a fund that does not employ leverage.
If you have a question not addressed above, please contact ProFunds at (888) PRO-FNDS (776-3637), or send your question to info@profunds.com.
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There is no guarantee that any ProFund will achieve its investment objective. See the prospectus for more information. Exchanges may result in tax consequences.
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