SMDD
ProShares UltraPro Short MidCap400
📎 Investment Objective
SMDD seeks to provide 3x the inverse (opposite) daily performance of the S&P MidCap 400 Index, before fees and expenses. This means the fund aims to increase in value when the underlying index declines.
Overview
ETF tracking ProShares UltraPro Short MidCap400
Performance
Price Chart
Investment Summary
📎 Investment Objective
SMDD seeks to provide 3x the inverse (opposite) daily performance of the S&P MidCap 400 Index, before fees and expenses. This means the fund aims to increase in value when the underlying index declines.
🎯 Investment Strategy
SMDD uses derivatives, such as swaps and futures contracts, to provide the targeted 3x inverse exposure to the S&P MidCap 400 Index. The fund does not invest directly in the component stocks of the index.
✨ Key Features
- Provides 3x daily inverse exposure to the S&P MidCap 400 Index
- Utilizes derivatives to achieve its investment objective
- Designed for short-term trading, not long-term buy-and-hold
- Has a very high degree of leverage, which amplifies both gains and losses
⚠️ Primary Risks
- Significant risk of loss due to the fund's high degree of leverage
- Potential for large and rapid losses, especially in volatile markets
- Tracking error risk, as the fund may not perfectly match the 3x inverse daily performance of the index
- Counterparty risk associated with the derivatives used by the fund
👤 Best For
SMDD is a highly speculative fund intended for experienced, risk-tolerant investors with a short-term trading horizon. It is not suitable for long-term buy-and-hold investors or those with a low risk tolerance.