ProShares recently launched the ProShares RAFI Long/Short (RALS) exchange traded fund.

RALS is the first dedicated ETF that offers a long/short strategy based on Research Affiliate’s pioneering Fundamental Index (RAFI®) methodology. The RAFI approach uses fundamental measures of company size—sales, dividends, cash flow and book value— instead of security price in selecting and weighting securities.

The new ETF seeks to match the performance of the RAFI® US Equity Long/Short Index before fees and expenses. The Index takes long positions in companies with large RAFI weights relative to their capitalization weights and short positions in companies with small RAFI weights relative to their capitalization weights.

By allocating an equal dollar amount to its long and short positions, the Index is designed to generate an absolute return over a full market cycle.

According to ProShares, RALS may appeal to investors looking for strategies that strive to deliver low correlation and favorable returns regardless of market direction.

The expense ratio for the new fund is 0.95%.

Visit the ETF Directory for a complete list of ProShares ETFs.