ProShares has launched the first exchange-traded funds that offer leveraged and inverse exposure to the biotechnology sector.

The ETFs are listed as Ultra Nasdaq Biotechnology (BIB) and UltraShort Nasdaq Biotechnology (BIS) and seek to provide 200% or -200% of the returns of the Nasdaq Biotechnology Index, during a single day.

Leveraged and inverse ETFs magnify gains and losses in their sector and can be extremely volatile. Experts warn that daily compounding can severely skew results and these products should be monitored carefully.

"Many investors have strong opinions on the biotech industry, and these ETFs provide them with leveraged or inverse exposure to the sector to help them act on their views," said Michael Sapir, chairman and CEO of ProShare Advisors, ProShares' investment advisor.

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