SDS

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.

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.

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 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.

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.

Investors can purchase shares of SDS through a brokerage account, similar to other stocks and ETFs. It is traded on the New York Stock Exchange (NYSE) under the ticker symbol "SDS."

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.

As of the latest update, SDS has an expense ratio of approximately 0.89%. This fee covers the costs associated with managing the fund, including the costs of leveraging and maintaining the inverse exposure.

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 distributes dividends on a quarterly basis. These dividends come from the income generated by the underlying securities in the fund’s portfolio, adjusted for the ETF’s leveraged and inverse position.