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.

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.

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.

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.

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.

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.

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.

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.

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."