SDS

SDS specifically targets twice the inverse daily return of the S&P 500 Index. Other inverse ETFs may focus on different indices or offer varying levels of inverse exposure, such as 1x or 3x, and may use different strategies or underlying assets.

Key performance metrics for SDS include its net asset value (NAV), expense ratio, total return, and tracking error. NAV reflects the per-share value of the ETF, the expense ratio indicates the cost of managing the fund, total return measures overall performance including dividends, and tracking error shows how closely SDS tracks its -2x performance objective.

SDS is managed by ProShares. The fund uses leverage and financial derivatives such as futures contracts and swaps to achieve its goal of providing twice the inverse of the daily return of the S&P 500 Index. The ETF is rebalanced daily to maintain the -2x leverage ratio.

Risks associated with SDS include leverage risk, market risk, and tracking error. The use of leverage can amplify both gains and losses, leading to increased volatility. Daily rebalancing and compounding effects can result in performance deviations from the intended -2x return over longer periods.

Factors affecting SDS’s performance include market conditions, changes in the S&P 500 Index, and the impact of leverage and daily rebalancing. Volatility and compounding effects can lead to deviations from the intended -2x return over time.

SDS rebalance its portfolio daily to maintain its -2x leverage ratio relative to the S&P 500 Index. This daily rebalancing is necessary to meet the fund’s objective of providing twice the inverse daily return.

The historical performance of SDS reflects its objective to provide twice the inverse of the daily return of the S&P 500 Index. While it can achieve this over short periods, the long-term performance may vary due to the effects of leverage, daily rebalancing, and compounding.

Yes, SDS can be held in retirement accounts such as IRAs or 401(k)s. Investors should consider their investment goals and risk tolerance due to the leveraged and inverse nature of the fund.

SDS aims to provide twice the inverse of the daily return of the S&P 500 Index. This means that if the S&P 500 Index decreases by 1% in a day, SDS seeks to increase by 2%. Conversely, if the S&P 500 Index increases, SDS aims to decrease by twice that amount. Due to daily rebalancing and compounding effects, the long-term performance may deviate from -2x the cumulative return of the S&P 500.

Similar ETFs to SDS include ProShares UltraPro Short S&P 500 ETF (SPXU), which seeks to provide three times (3x) the inverse daily return of the S&P 500 Index, and Direxion Daily S&P 500 Bear 3x Shares (SPXS), which also aims to deliver three times the inverse daily performance of the S&P 500 Index.