ProShares Short S&P 500 Investment Performance and Risks

The ProShares Short S&P 500 is a type of exchange-traded fund (ETF) designed to track the inverse performance of the S&P 500 index.

This means that if the S&P 500 index falls, the ProShares Short S&P 500 is expected to rise, and vice versa. It achieves this through the use of derivatives, specifically futures contracts and swaps.

The fund is actively managed, and its performance can be influenced by various market and economic factors, including interest rates and inflation.

The ProShares Short S&P 500 has a relatively low expense ratio of 0.89%, which is lower than some other inverse ETFs.

The Performance of ProShares Short S&P 500 is a crucial aspect to consider when evaluating this investment option. The fund has had a return of -46.43% since its inception date of June 23, 2009, to December 31, 2021, which is significantly lower than the 16.62% gain in the S&P 500 index.

Over the years, the SPXU has consistently underperformed the market, with a 3-year average return of -62.13%, a 5-year average return of -49.94%, and a 10-year average return of -45.18%. This trend suggests that the fund has struggled to keep pace with the broader market.

Here's a summary of the fund's performance over different time periods:

The SPXU fund has had a dismal performance over the years, with a return of -46.43% since its inception in 2009. This is in stark contrast to the S&P 500 index, which has gained 16.62% over the same period.

The fund's performance has been consistently negative, with a 3-year return of -62.13%, a 5-year return of -49.94%, and a 10-year return of -45.18%.

The fund's high 1-year return is 50.48%, but this is not enough to make up for its significant losses in other periods. In fact, the Maximum Loss 1 Year is -15.19%, which is a significant concern for investors.

Here's a breakdown of the fund's performance over different time periods:

The fund's fees are not explicitly mentioned in the article, but its performance suggests that it may not be a good option for investors.

The SPXU is an investment that involves significant risks. One of the main risks is the use of leverage, which can magnify losses if the S&P 500 rises significantly.

Investors should be aware that the ProShares UltraPro Short S&P 500 ETF carries greater risks than many funds. This is because it uses leverage to deliver three times the inverse daily return of the S&P 500 Index.

The SPXU carries a multitude of risks, including counterparty, equity, market, and intraday price-performance risk. These risks can result in losses for investors.

Investors should also be aware that there is no guarantee that the SPXU ETF will achieve its performance and investment objectives. This means that some or all of their investment amount could be lost.

Here are some of the specific risks associated with the SPXU:

The ProShares Short S&P 500 ETF is a leveraged fund that provides daily investment results corresponding to the inverse of the S&P 500 Index.

To achieve this, the fund holds swaps from multiple counterparties and futures contracts, which are often from big banks. This makes the fund a non-diversified investment, meaning the credit of these counterparties can impact its performance.

The fund's exposure level varies day-to-day due to daily rebalancing of the portfolio, which means its value can change significantly over time.

The ProShares UltraPro Short S&P 500 ETF, or SPXU, is a non-diversified fund that invests in swaps from multiple counterparties and futures contracts to provide three times the inverse daily exposure to the S&P 500 Index.

This means that SPXU holds financial instruments with few counterparties, which can impact its performance if the credit of these counterparties is affected.

The fund's top holdings are S&P 500 swaps from big banks, which can make it vulnerable to credit risks.

As with all leveraged ETFs, SPXU should be held for no longer than one day due to the compounding of daily returns, which can lead to significantly different returns than the targeted returns if held for longer.

The fund's exposure level varies day-to-day due to the daily rebalancing of the portfolio.

The ProShares Short S&P500 ETF, or SH, on the other hand, seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P 500.

This means that SH aims to provide the opposite returns of the S&P 500 on a daily basis.

The SPXU fund has a relatively high expense ratio of 0.90% as of February 10, 2022, which can eat into investors' returns.

This high expense ratio is due to the actively-managed process of daily rebalancing, which requires a lot of work and resources.

The fund has $598.78 million in assets under management (AUM) as of February 10, 2022, which is a significant amount of money.

Understanding the Index Sector Weightings is crucial when dealing with inverse ETFs like SPXU. Knowing which sectors comprise the S&P 500 index is essential for predicting the performance of SPXU.

The S&P 500 index is heavily weighted towards the Information Technology sector, making up 29.17% of the index as of December 31, 2021. This means that if the Information Technology sector performs well, the S&P 500 index is likely to rise, resulting in a loss for SPXU.

The Health Care sector is the second-largest sector in the S&P 500 index, accounting for 13.29% of the index. This sector is also a significant contributor to the overall performance of the S&P 500 index.

Here is a breakdown of the top sectors in the S&P 500 index as of December 31, 2021:

These sector weightings can greatly impact the performance of SPXU, making it essential to stay up-to-date on the latest sector trends and weightings.

ProShares Short S&P 500 is a popular inverse ETF that allows investors to profit from a decline in the S&P 500 index.

Its expense ratio is 0.89%, which is relatively low compared to other inverse ETFs.

This makes it an attractive option for investors looking to hedge their portfolios or bet against the market.

The fund has a beta of -1.00, which means it's designed to move in the opposite direction of the S&P 500 index.

This makes it a useful tool for investors who want to protect their portfolios from significant losses.

The fund has a tracking error of 0.35%, which is relatively low compared to other inverse ETFs.

The ProShares Short S&P 500 ETF is an interesting investment option. It seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P 500.

The investment objective of the ProShares Short S&P 500 ETF is to track the inverse of the S&P 500. This means that if the S&P 500 goes up, the ETF goes down, and vice versa.

The ProShares Short S&P 500 ETF is designed to provide daily returns that are the inverse of the S&P 500. This can be a useful tool for investors who want to profit from a market downturn.

In our analysis, we noticed that the funds category comparison reveals some interesting patterns. The ProShares UltraShort MSCI EAFE fund has a 1-year performance of -13.11.

The Rydex Inverse S&P 500 Strategy Fund has a similar performance across different share classes, with all classes showing a 1-year performance of -12.88. This suggests a high degree of consistency within this fund.

The Federated Hermes Prudent Bear Fund Class C Shares have a 1-year performance of -12.89, which is only slightly lower than the Rydex Inverse S&P 500 Strategy Fund classes.

The Rydex Inverse S&P 500 Strategy Fund Class H has a 1-year performance of -12.91, making it the second-best performer in our comparison.

Here's a quick summary of the funds' 1-year performance:

The ProShares Short S&P 500 is an inverse ETF that allows investors to profit from a decline in the S&P 500 index.

The fund's net expense ratio is 0.89%, which is relatively low compared to other inverse ETFs.

This means that for every dollar invested, 0.89% will go towards management fees, leaving the remaining 99.11% for potential gains or losses.

The fund has a minimum investment requirement of 100 shares, which is a relatively low barrier to entry for individual investors.

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The average price of a gallon of gasoline in the United States was $3.49 in 2012, a significant increase from the $1.86 average price in 2002.

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The price of a barrel of crude oil has also experienced significant fluctuations, with a 10-year high of $114.82 in 2014 and a 10-year low of $32.88 in 2016.

$42.00 is a significant price point in the context of data storage. A 1TB external hard drive can cost around $42.00, offering a cost-effective solution for storing large amounts of data.

This price point is comparable to other data storage options, such as cloud storage services that often charge around $5.00 per month for 1TB of storage.

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ETF stock prices can fluctuate daily, as seen with the ProShares Short S&P 500 ETF closing at $42 on 2025-01-03.

Monitoring stock prices is essential for investors, which is why it's great to have tools like watchlists to track stocks daily and receive important alerts.

The ProShares Short S&P 500 ETF's stock price can be added to a watchlist to stay informed about its performance.

Having access to current stock prices allows investors to make informed decisions about their investments.