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Four Ways ProFunds Can Work For You
A Disciplined Strategy: Buy and Hold
Disciplined investors seeking superior returns over time may decide to buy one or more of the Ultra ProFunds or the UltraSector ProFunds — and hold their shares for five years, 10 years, or even longer. These investors believe they will be better off in the long run with index-based funds that seek to achieve a multiple of the index each day rather than one that seeks to match it.
An Active Strategy: Anticipate market moves
If you're an active investor, ProFund's policy of no transaction fees and no upper limits on frequency or size of exchanges can help you pursue your investment strategy. You can seek to profit by moving from anticipated under-performing segments of the equity market to anticipated over-performing segments by exchanging among the many available ProFunds. For instance, you might shift your investments between value-oriented and growth-oriented ProFunds. When you expect the market to head down, you might choose to move to a Inverse ProFund. With ProFunds, you can target your exposure in certain market segments anywhere from double the daily performance of certain indexes to double their inverse.
A Focused Strategy: Invest in Specific Industries
Sectors of the economy may not move in sync with each other or with the economy as a whole. At any given time, there usually is a sector or industry index that is particularly attractive. A variety of analytical tools are available to the investor to attempt to determine which sectors are currently in favor — and which are not. You can seek to rotate investments into strong sectors and out of weak ones, or stick with a sector that you believe in for the long term.
A Prudent Strategy: Protect your Gains
If you're an investor with a long-term outlook, you can invest in the Inverse ProFunds or the Rising Rates Opportunity ProFund to help protect your equity or bond portfolio against a market decline. It's called hedging — a strategy that attempts to reduce the risk of a portfolio by making investments that are expected to perform differently than each other.
There is no guarantee that any ProFund will achieve its investment objective. See the prospectus for more information. Exchanges may result in tax consequences.
As with all investments in ProFunds, you must make your own determination of whether an investment in any particular fund is consistent with your investment objectives, risk profile and financial circumstances. ProFunds does not recommend any particular fund or investment strategy.
The Ultra and UltraSector ProFunds routinely employ leveraged investment techniques that magnify gains and losses and result in greater volatility in value. Small-Cap ProFunds carry additional risks since smaller companies generally have a higher risk of failure.
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