At a glance
SDS charges 0.91% a year, above the 0.68% average of the 5 funds most like it (the most expensive of 3). It has $365.8M in assets, the 4th largest of that group; it paid 5.27% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −17.9% with distributions reinvested (S&P 500: +11.5%), 3rd of those 6 funds; over three years it returned −32.4% a year. At its worst it fell 18.3% in the 2020 crash (S&P 500: 33.7%) and 28.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 2 months after the lows.
The short version
ProShares UltraShort S&P500 (SDS) uses swaps and futures to seek twice the opposite (-2x) of the S&P 500's daily return. That makes it a tool for short-term bets against, or hedges on, large US stocks. Its exposure resets daily, so long-term results drift far from -2x: it lost about 96% over the 10 years to October 27, 2026. Its 0.91% expense ratio is higher than the -1x funds SH (0.89%) and SPDN (0.47%).
Price history
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SDS -17.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SDS official prospectus, to Dec 31, 2025 | — | -26.85% | — | -23.43% | -27.13% | — |
| SDS price data to Oct 27, 2026 | -19.2% | -17.9% | -32.4% | -20.0% | -27.6% | -25.0% |
- Over the year to Oct 27, 2026, SDS returned -17.9%, 3rd of 6 among similar funds.
- Its 5-year annualized return was -20.0% and its 10-year -27.6%.
- In the 2020 COVID crash, while stocks fell, it gained 90%.
- Its worst full calendar year was 2009 (-50.6%); its best was 2008 (+60.2%).
- The deepest fall in its price history was 99.9% (Mar 9, 2009 to Aug 13, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -19.2% | — |
| 2025 | -28.1% | -26.85% |
| 2024 | -29.5% | -29.43% |
| 2023 | -31.6% | -31.53% |
| 2022 | +30.7% | +30.55% |
| 2021 | -43.0% | -42.95% |
| 2020 | -49.9% | -50.07% |
| 2019 | -41.2% | -41.29% |
| 2018 | +6.1% | +5.86% |
| 2017 | -32.0% | -31.95% |
| 2016 | -24.2% | -24.02% |
| 2015 | -9.6% | — |
| 2014 | -25.7% | — |
| 2013 | -45.2% | — |
| 2012 | -29.9% | — |
| 2011 | -18.8% | — |
| 2010 | -32.2% | — |
| 2009 | -50.6% | — |
| 2008 | +60.2% | — |
| 2007 | -3.7% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 195.2% over that stretch · deepest drop along the way 41%, back to its old high 1.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 90% over that stretch · deepest drop along the way 18.3%, back to its old high 0.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 56.1% over that stretch · deepest drop along the way 28.5%, back to its old high 1.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.6700 | |
| 2025 | $2.6500 | -65.6% |
| 2024 | $7.7000 | -10.5% |
| 2023 | $8.6000 | +975.0% |
| 2022 | $0.8000 | -73.3% |
| 2020 | $3.0000 | -73.3% |
| 2019 | $11.2500 | -18.2% |
| 2018 | $13.7500 | +1275.0% |
| 2017 | $1.0000 | -100.0% |
| 2008 | $6368.0000 | +789.4% |
| 2007 | $716.0000 |
What's inside
As of Aug 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (141.25% of net assets), with its inverse exposure coming from 11 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| Repurchase Agreement RA | 2.60% | |
| Repurchase Agreement RA | 1.73% | |
| Repurchase Agreement RA | 1.04% | |
| Repurchase Agreement RA | 0.55% | |
| Repurchase Agreement RA | 0.35% |
By country
United States 6.26%By asset type
RA 6.26%What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $48.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.11%, +0.74%, -4.68%.
How it works
SDS is tied to the S&P 500. That index holds 500 of the largest US-listed companies, weighted by market value, and is maintained by S&P Dow Jones Indices. The index weights are reviewed each September, with adjustments in March, June and December. SDS does not own or short those stocks directly. Instead, ProShare Advisors uses a mathematical model to choose a mix of derivatives. Derivatives are contracts whose value depends on the index. Together, they aim to move about twice as much as the index, in the opposite direction, each day.
The main tools are total return swaps and S&P 500 E-mini futures. Swaps are private contracts with large financial institutions that pay the fund when the index falls. The fund's August 31, 2026 filing listed 26 positions: swaps, futures and repurchase agreements, which are short-term loans backed by government securities. Cash backing these contracts sits in Treasury bills, repurchase agreements or a ProShares money market ETF. If a swap partner fails to pay, the fund can lose money.
The fund rebalances every day. When the index rises, the fund's assets shrink, so it cuts its exposure. When the index falls, it adds exposure. Because of this daily reset, returns over weeks or years can differ sharply from -2x the index, usually for the worse in choppy markets. The prospectus warns that a one-day index gain near 50% could wipe out an investment entirely.
What it really costs
- SDS charges 0.91% a year, versus an average of 0.68% for the similar funds below (3rd of 3, cheapest first).
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $93 in the first year and $1,120 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SDS | $93 | $290 | $504 | $1,120 |
Structure and tax notes
- Resets its inverse exposure every day. Over periods longer than a day, compounding means returns can differ sharply from -2× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
SDS resets its -2x inverse exposure every day, and holding it for long periods has led to steep losses, including about 96% over the 10 years to October 27, 2026.
SDS has posted big gains during crashes. From the market's October 9, 2007 peak to its March 9, 2009 low, it rose 195.2%. It gained 90% in the 2020 COVID crash and 56.1% in the 2022 bear market. Those gains reversed quickly once stocks recovered. It fell 50.6% in 2009, and from March 9, 2009 to August 13, 2026 it lost 99.9% without recovering. A hedge like this only helps if it is bought and sold close to the drop. That timing is hard to get right for anyone living on withdrawals from a portfolio.
Its trailing yield was 5.27% as of October 27, 2026, paid quarterly, but that income did not offset the losses. In the SEC's standard example, costs on $10,000 reach $1,120 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want to profit from, or hedge against, a drop in the S&P 500 lasting a day or a few days, and who check positions daily.
- Experienced investors who understand daily resets. The fund gained 34.31% in the quarter ending June 30, 2022, during a sharp market fall.
- Traders who want stronger short-term downside exposure than the -1x funds SH or SPDN, and who accept the higher risk.
Look elsewhere if
- Buy-and-hold and retirement investors: SDS lost about 96% over the 10 years to October 27, 2026 and never recovered from a 99.9% drop.
- Investors wanting milder short exposure may compare SH or SPDN. Both target -1x daily and charge 0.89% and 0.47% a year.
- Income seekers: its 5.27% trailing yield as of October 27, 2026 came alongside a 17.9% loss over the same year.
Close alternatives
Matched by leveraged/inverse funds on the same index (s&p 500), same direction.
| Fund | Exposure | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SDS this fund | -2× | 0.91% | $365.8M | -17.9% | -32.4% |
| SH ProShares Short S&P500 | -1× | 0.89% | $1.20B | -7.2% | -15.0% |
| SPXU ProShares UltraPro Short S&P500 | -3× | — | $546.7M | -28.1% | -48.0% |
| SPXS Direxion Daily S&P 500 Bear 3X Shares | -3× | — | $416.8M | -28.0% | -46.7% |
| SPDN Direxion Daily S&P 500 Bear 1x Shares | -1× | 0.47% | $213.8M | -6.7% | -14.7% |
| HIBS Direxion Daily S&P 500 High Beta Bear 3X Sh… | -3× | — | $32.2M | -58.2% | -65.9% |
Questions investors ask
Is SDS good for long-term investors?
SDS is not built for long-term holding. ProShares says it seeks -2x the S&P 500's return for a single day only. Over longer periods, results will likely differ from that, sometimes by a lot. Per its prospectus, average annual returns through December 31, 2025 were -26.85% over one year, -23.43% over five years and -27.13% over 10 years. Its price fell 99.9% from March 9, 2009 to August 13, 2026 and had not recovered.
What's the difference between SDS and SH?
Both are ProShares funds that move against the S&P 500. SH targets -1x the daily return, while SDS targets -2x. So SDS swings about twice as hard each day and loses ground faster when stocks rise. Over the year to October 27, 2026, SDS lost 17.9% and SH lost 7.2%. SH charges 0.89% a year against 0.91% for SDS. It is also larger, with about $1.2 billion in assets.
Does SDS pay dividends?
Yes. SDS pays distributions quarterly. Over the 12 months to October 27, 2026, it paid $2.84 a share, a trailing yield of 5.27%. The fund holds swaps, futures and cash-like investments such as repurchase agreements, not stocks. So these payouts most likely come from interest on that cash, not from company dividends. The amount can change with short-term interest rates. The payouts did not make up for the fund's 17.9% loss over the same year.
Why doesn't SDS return -2x the S&P 500 over a year?
Because it resets its exposure every day. After the index rises, the fund cuts its short exposure. After the index falls, it adds to it. Over many days, this compounding pulls results away from -2x the index's longer-term return. Choppy, sideways markets tend to wear down its value. Fees and financing costs add to the drag. The prospectus also warns that if the S&P 500 neared a 50% gain in one day, holders could lose everything.
How much does SDS cost?
SDS has a 0.91% expense ratio, which is the annual cost taken from fund assets. That includes a 0.75% management fee. It is above the 0.68% average for similar inverse S&P 500 funds that report costs. It is also above SH (0.89%) and SPDN (0.47%), though both target -1x rather than -2x. In the SEC's standard example, a $10,000 investment earning 5% a year would cost about $93 after one year, $290 after three, $504 after five and $1,120 after 10.