SDOW Benefits, Risks And Leveraged ETF Watchlist

The ProShares UltraPro Short Dow30 ETF is a 3X leveraged bear ETF on the Dow Jones, suitable for short-term trading or portfolio hedging. SDOW and other leveraged ETFs experience "drift" or decay, primarily from beta-slippage, which worsens with volatility and higher leverage. SDOW's average 12-month drift since inception is slightly positive (+1.2%), but this excludes extended bear markets, where drift can turn negative.

Seeking Alpha • Dec 1, 2025

SDOW Can Be Utilized To Trade Market Turbulence

SDOW is a -3x inverse leveraged ETF on the Dow, suitable only for short-term traders seeking to amplify daily market moves. Daily resets and compounding effects make SDOW extremely risky for long-term investors, with potential for significant value decay over time. In my opinion, market resilience and long-term upward bias mean SDOW will likely trend toward zero, making it unsuitable as a long-term investment.

Seeking Alpha • Aug 5, 2025

Top Performing Leveraged/Inverse ETFs: 04/27/2025

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

ETF Trends • May 1, 2025

Trump Tariff Shakes U.S. Market: 5 Inverse ETFs to Gain

The U.S. equity index nosedived on Trump's sweeping series of tariffs, resulting in a spike for inverse or inverse-leveraged ETFs.

Zacks Investment Research • Apr 3, 2025

ProShares UltraPro Short Dow30 ETF: Using Leverage Against Blue Chips

The Dow Jones Industrial Average is a key market indicator, and current trends suggest a potential end to the bull cycle. ProShares UltraPro Short Dow30 ETF offers a way to gain short exposure to DJI, but it's risky and not for long-term holding. SDOW uses inverse leverage to deliver outsized returns during market declines, but asset deterioration is common with leveraged ETFs.

Seeking Alpha • Mar 12, 2025

Inverse ETFs to Play Now on Middle East Tension & Rising Rates?

Wall Street wavered this week on high inflation data which lowered chances of an imminent Fed rate cut. Plus, geopolitical tension in Middle East has weighed on stocks.

Zacks Investment Research • Apr 12, 2024

Don't Bet Against Progress

Shorting or hedging against companies driving innovation and growth in the US stock markets is not a viable long-term strategy. Historical trends suggest that bear markets are relatively short-lived, and positive trends in the market indicate potential long-term growth for large firms and disruptive innovators. ETFs that bet against innovation and growth are likely to underperform their benchmarks in the long term. It is better to invest in stocks of innovative firms and funds tracking major indexes.

Seeking Alpha • Nov 1, 2023

SDOW: Tempting But Too Hard To Time Against Volatility

Shorting requires perfect timing and knowledge of daily path and volatility interaction to make money. The ProShares UltraPro Short Dow30 ETF is a complex financial instrument that uses futures contracts and swap agreements. SDOW carries risks such as leverage risk, compounding risk, market risk, and credit risk. Investors should carefully consider these risks before investing.

Seeking Alpha • Sep 14, 2023

5 Best Inverse-Leveraged ETFs of February

Wall Street gave a dismal performance last month on Fed's longer-than-expected rate hike speculation, with all three major indices in red.

Zacks Investment Research • Mar 1, 2023

Top Performing Leveraged/Inverse ETFs: 01/22/2023

Top Performing Levered/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

ETF Trends • Jan 24, 2023