TWM

📎 Investment Objective

The ProShares UltraShort Russell2000 ETF (TWM) seeks to provide daily investment results that correspond to the inverse (-2x) of the daily performance of the Russell 2000 Index.

✨ Key Features

• Provides inverse (-2x) exposure to the Russell 2000 Index, a benchmark for small-cap U.S. stocks
• Designed for short-term trading and hedging purposes, not long-term buy-and-hold investing
• Utilizes derivatives to achieve its inverse exposure, which can amplify gains and losses
• Has a very low asset base and expense ratio of 0.00%

⚠️ Primary Risks

• Significant daily rebalancing risk, as the fund's performance can deviate significantly from the inverse of the index over longer periods
• Derivative and leverage risks, as the use of futures and swaps can magnify losses
• Liquidity risk due to the low asset base and trading volume
• Potential for increased volatility and tracking error compared to the underlying index

👤 Best For

TWM is best suited for experienced, short-term traders and investors who are looking to hedge their exposure to small-cap U.S. stocks or speculate on the decline of the Russell 2000 Index. It is not recommended for long-term buy-and-hold investors due to the risks associated with its inverse and leveraged nature.