At a glance
SMDD charges 0.95% a year. It has $1.5M in assets; it paid 3.76% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −27.9% with distributions reinvested (S&P 500: +11.5%); over three years it returned −41.0% a year. At its worst it fell 24.6% in the 2020 crash (S&P 500: 33.7%) and 44.0% in the 2022 bear market (S&P 500: 24.5%).
The short version
ProShares UltraPro Short MidCap400 (SMDD) uses swaps and futures to seek three times the inverse (-3x) of the S&P MidCap 400 Index's daily return. It is a tool for traders betting on short, sharp drops in U.S. mid-cap stocks. Its exposure resets every day, which makes it a poor fit for long holding periods: it lost an average of 39.65% a year over the 10 years to December 31, 2025. The expense ratio is 0.95% after a fee waiver.
Price history
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SMDD -27.9% 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 | |
|---|---|---|---|---|---|---|
| SMDD official prospectus, to Dec 31, 2025 | — | -27.31% | — | -32.61% | -39.65% | — |
| SMDD price data to Oct 27, 2026 | -27.8% | -27.9% | -41.0% | -27.1% | -39.2% | -41.6% |
- Over the year to Oct 27, 2026, SMDD returned -27.9%.
- Its 5-year annualized return was -27.1% and its 10-year -39.2%.
- In the 2020 COVID crash, while stocks fell, it gained 230.1%.
- Its worst full calendar year was 2020 (-74.4%); its best was 2018 (+33.5%).
- The deepest fall in its price history was 100% (Feb 11, 2010 to Aug 14, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -27.8% | — |
| 2025 | -27.5% | -27.31% |
| 2024 | -31.1% | -31.23% |
| 2023 | -38.4% | -38.21% |
| 2022 | +7.7% | +7.35% |
| 2021 | -58.0% | -58.08% |
| 2020 | -74.4% | -74.68% |
| 2019 | -53.4% | -53.07% |
| 2018 | +33.5% | +29.50% |
| 2017 | -39.9% | -38.60% |
| 2016 | -51.3% | -51.16% |
| 2015 | -7.5% | — |
| 2014 | -32.6% | — |
| 2013 | -62.7% | — |
| 2012 | -47.5% | — |
| 2011 | -36.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 230.1% over that stretch · deepest drop along the way 24.6%, back to its old high 0.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 46.2% over that stretch · deepest drop along the way 44%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.1900 | |
| 2025 | $0.6100 | -15.3% |
| 2024 | $0.7200 | -30.8% |
| 2023 | $1.0400 | +1633.3% |
| 2022 | $0.0600 | -99.3% |
| 2020 | $8.1920 | +60.0% |
| 2019 | $5.1200 | +700.0% |
| 2018 | $0.6400 |
What's inside
As of Aug 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (0% of net assets), with its inverse exposure coming from 5 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| Repurchase Agreement RA | 29.82% | |
| Repurchase Agreement RA | 19.83% | |
| Repurchase Agreement RA | 11.90% | |
| Repurchase Agreement RA | 6.34% | |
| Repurchase Agreement RA | 3.97% |
By country
United States 71.85%By asset type
RA 71.85%What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $520K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -10.10%, +8.17%, -0.12%.
How it works
SMDD is tied to the S&P MidCap 400 Index from S&P Dow Jones Indices. The index holds 400 U.S. companies weighted by market capitalization (total stock market value). As of May 31, 2026, they ranged from $980 million to $55 billion in size. The index is reviewed each September, and its weights are adjusted in March, June and December. The prospectus flags capital goods and information technology as industries with significant weight.
SMDD does not short individual stocks. Instead, ProShare Advisors uses a mathematical approach to combine derivatives (contracts whose value tracks another asset) that aim for -3x the index's daily return. These are mainly total return swaps with major financial institutions and S&P MidCap 400 E-mini futures. The cash behind these contracts sits in short-term instruments. As of August 31, 2026, repurchase agreements (short-term deals backed by securities, usually U.S. government debt) made up about 72% of net assets.
The fund rebalances daily. When the index rises, the fund's assets shrink and it cuts its exposure. When the index falls, it adds exposure. As a result, returns over weeks or years can differ sharply from -3x. The prospectus estimates that if the index fell 20% over a year with 50% volatility (large daily swings), the fund would lose about 56.4% instead of gaining 60%. If the index rose close to 33% in a single day, the investment could be wiped out.
What it really costs
- SMDD charges 0.95% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 3.32% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $97 in the first year and $4,229 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SMDD | $97 | $992 | $1,900 | $4,229 |
Structure and tax notes
- Resets its inverse exposure every day. Over periods longer than a day, compounding means returns can differ sharply from -3× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
SMDD seeks -3x the S&P MidCap 400's daily return and resets every day, and the prospectus warns that results over longer periods will likely differ from that target, possibly significantly.
SMDD launched after the 2008 crisis, so it has no record from that period. It rose 230.1% during the 2020 COVID crash (February 19 to March 23) and 46.2% in the 2022 bear market (January 3 to October 12). Those gains faded quickly. 2020 was its worst calendar year, with a loss of 74.68%. A 44% slide from June to August 2022 had not been made back by October 27, 2026. From its launch to August 14, 2026, it lost nearly 100% of its value. A retiree drawing cash in a downturn would have needed near-perfect timing to benefit.
SMDD pays distributions quarterly. Its trailing 12-month yield was 3.76% as of October 27, 2026, which was dwarfed by a 27.9% one-year loss. The expense ratio is 0.95% after a 3.32% fee waiver. The SEC's standard $10,000 example puts costs at $97 after one year and $4,229 after ten. 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
- Experienced traders seeking a one-day bet that the S&P MidCap 400 Index will fall, magnified to three times the inverse (-3x) daily move.
- Hands-on traders who watch positions daily: exposure resets each day, and a single-day index gain near 33% could wipe out the whole investment.
- Holders of mid-cap stocks seeking a short-lived hedge (an offsetting bet) with little cash, who accept a 0.95% expense ratio and swap-partner risk.
Look elsewhere if
- Buy-and-hold and retirement investors: the fund lost an average 39.65% a year over the 10 years ended December 31, 2025.
- Income seekers: the 3.76% trailing yield (payouts over the prior year) as of October 27, 2026, was dwarfed by a 27.9% one-year loss.
- Anyone seeking a lasting bet against mid-caps: even during the 2022 bear market, the fund dropped 44% between June 16 and August 16, 2022.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is SMDD meant to be held long term?
No. SMDD resets its -3x exposure daily, and the prospectus warns that returns over periods longer than a day will likely differ from that target, possibly by a lot. The fund lost an average of 32.61% a year over five years and 39.65% a year over ten, both through December 31, 2025. Based on market prices, it fell about 99% over the 10 years to October 27, 2026. The prospectus also warns that leverage raises the risk of losing an entire investment.
How is SMDD different from a regular mid-cap index fund?
SMDD aims to move opposite to the index, at three times the size, one day at a time. A traditional S&P MidCap 400 fund owns the index's stocks and gains when they rise. SMDD instead uses total return swaps and S&P MidCap 400 E-mini futures to seek -3x the index's daily return, so it loses money when mid-caps rise. As of August 31, 2026, it held no mid-cap stocks directly, and about 72% of its net assets sat in repurchase agreements.
Why can SMDD lose money even when mid-cap stocks fall?
Daily compounding is a key reason. Because SMDD resets its -3x exposure every day, choppy markets wear down returns over longer periods. Volatility measures how much the index moves up and down from day to day. The prospectus estimates that if the S&P MidCap 400 fell 20% over a year with 25% volatility, the fund would gain about 34.2%, short of the 60% that -3x implies. At 50% volatility, it would lose about 56.4%. Fees and financing costs also reduce returns.
Does SMDD pay dividends?
Yes. SMDD pays distributions quarterly. Its trailing 12-month yield was 3.76% as of October 27, 2026, or about $0.33 a share. The fund does not own mid-cap stocks directly. As of August 31, 2026, its assets were mostly repurchase agreements backing its swaps and futures. The payouts are small next to the fund's price swings: the shares lost 27.9% over the year to October 27, 2026.
What is SMDD's expense ratio?
SMDD's expense ratio is 0.95%, according to the prospectus filed September 25, 2026. That figure is after a fee waiver of 3.32 percentage points, and the management fee alone is 0.75%. The SEC's standard example assumes $10,000 invested, a 5% yearly return and shares redeemed at the end of each period. It estimates costs of $97 over one year, $992 over three, $1,900 over five and $4,229 over ten. The jump after year one reflects the fund's higher costs without the waiver.