Just as the Dow Jones Industrial Average recently dropped to a new low for the year, ProFund Advisors has launched the UltraShort Dow 30 ProFund. Tied to the Dow as its benchmark index, the fund is designed to move double the inverse, before fees and other expenses. If the Dow falls 1% on a given day, for instance, the fund should rise 2%.

"We continue to respond to the needs of financial advisers and individual investors by introducing new ProFunds to help implement their investment strategies," said Michael L. Sapir, chairman and chief executive officer of ProFund Advisors. "We expect this ProFund will be used to hedge portfolios or seek profit during an anticipated downturn in the DJIA."

This is the firm’s eighth inverse mutual fund, making it the industry’s largest lineup, according to Lipper. Other ProFund inverse funds include the Short Small-Cap fund, tied to the Russell 2000 Index, and the UltraBear fund, tied to the S&P 500.

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