SMN

The liquidity of SMN is determined by its trading volume and bid-ask spread. Generally, higher trading volumes indicate better liquidity, which can facilitate easier entry and exit from positions.

Historical performance includes data on past returns, both positive and negative, based on the fund’s objective to deliver -2x the daily performance of the Dow Jones U.S. Basic Materials Index. Historical performance should be reviewed with the understanding that past results do not guarantee future performance.

Factors include changes in the underlying Dow Jones U.S. Basic Materials Index, market volatility, interest rates, and the performance of the leveraged instruments used in the fund. The fund’s performance is also influenced by the daily rebalancing of leverage.

SMN is managed by ProShares. The fund uses financial instruments such as futures contracts, swaps, and other derivatives to achieve its leveraged inverse exposure. The fund aims to achieve its performance objective on a daily basis, which means it is designed for short-term trading and may not be suitable for long-term investors.

SMN can be purchased through brokerage accounts like other ETFs. It is traded on major stock exchanges, and investors can buy shares through a broker or trading platform.

Key performance metrics include the fund's daily return relative to its target (which is -2x the performance of the Dow Jones U.S. Basic Materials Index), tracking error, and volatility. Performance is typically evaluated on a daily basis, and long-term performance may differ due to the effects of compounding.

SMN generally does not distribute dividends. As an inverse leveraged ETF, its primary focus is on achieving its daily performance objectives rather than providing income through dividends.

In market downturns, SMN is designed to gain value when the Dow Jones U.S. Basic Materials Index falls. Due to its leveraged inverse strategy, it aims to provide amplified returns in the opposite direction of the index. However, its performance can be volatile and may not always align perfectly with the inverse multiple of the index's daily return.

Risks include high volatility, leverage risk, and compounding effects. Due to its use of leverage and derivatives, SMN may experience amplified losses as well as gains. It is designed for short-term trading and may not perform as expected over longer periods.

While technically possible, SMN is generally not recommended for retirement accounts due to its high volatility and leverage. It is more suited for short-term trading rather than long-term investing.