At a glance
SMN charges 0.95% a year. It has $3.8M in assets; it paid 2.28% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +42.9% with distributions reinvested (S&P 500: +11.5%); over three years it returned +0.4% a year. At its worst it fell 14.3% in the 2020 crash (S&P 500: 33.7%) and 28.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 1 month after the lows.
The short version
ProShares UltraShort Materials (SMN) is a leveraged inverse ETF: it aims to return two times the opposite (-2x) of the daily move in the S&P Materials Select Sector Index, which covers chemicals, mining and other materials companies in the S&P 500. It uses swap contracts, resets every day and charges 0.95% a year. The daily reset makes it a short-term trading tool; it lost about 89% over the 10 years to October 27, 2026.
Price history
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SMN +42.9% 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 | |
|---|---|---|---|---|---|---|
| SMN official prospectus, to Dec 31, 2025 | — | -17.67% | — | -18.08% | -25.14% | — |
| SMN price data to Oct 27, 2026 | +49.4% | +42.9% | +0.4% | -3.0% | -19.6% | -25.0% |
- Over the year to Oct 27, 2026, SMN returned +42.9%.
- Its 5-year annualized return was -3.0% and its 10-year -19.6%.
- In the 2020 COVID crash, while stocks fell, it gained 111.6%.
- Its worst full calendar year was 2009 (-78.2%); its best was 2008 (+56.1%).
- The deepest fall in its price history was 99.9% (Nov 20, 2008 to Oct 18, 2024), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +49.4% | — |
| 2025 | -17.9% | -17.67% |
| 2024 | +7.3% | +7.19% |
| 2023 | -20.4% | -20.69% |
| 2022 | -3.0% | -2.57% |
| 2021 | -45.8% | -45.91% |
| 2020 | -55.8% | -55.67% |
| 2019 | -33.6% | -33.00% |
| 2018 | +32.7% | +30.60% |
| 2017 | -38.0% | -37.75% |
| 2016 | -37.9% | -37.93% |
| 2015 | +15.8% | — |
| 2014 | -13.4% | — |
| 2013 | -36.3% | — |
| 2012 | -27.8% | — |
| 2011 | -3.2% | — |
| 2010 | -54.7% | — |
| 2009 | -78.2% | — |
| 2008 | +56.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 103.3% over that stretch · deepest drop along the way 60.5%, not recovered by the end of the data |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 111.6% over that stretch · deepest drop along the way 14.3%, back to its old high 0.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 29.3% over that stretch · deepest drop along the way 28.4%, back to its old high 1.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3000 | |
| 2025 | $0.5400 | -34.9% |
| 2024 | $0.8300 | +15.3% |
| 2023 | $0.7200 | +620.0% |
| 2022 | $0.1000 | -85.3% |
| 2019 | $0.6800 | +750.0% |
| 2018 | $0.0800 | -100.0% |
| 2008 | $4308.8000 |
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 | 41.10% | |
| Repurchase Agreement RA | 27.33% | |
| Repurchase Agreement RA | 16.40% | |
| Repurchase Agreement RA | 8.75% | |
| Repurchase Agreement RA | 5.47% |
By country
United States 99.04%By asset type
RA 99.04%What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $467.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.05%, +1.75%, -8.31%.
How it works
SMN aims to deliver two times the opposite (-2x) of each day's move in the S&P Materials Select Sector Index, run by S&P Dow Jones Indices. The index contains the S&P 500 companies classed as materials under the Global Industry Classification Standard: chemicals, construction materials, containers and packaging, metals and mining, and paper and forest products. Companies are weighted by stock market value. The index is reviewed each September, with weight adjustments in March, June and December.
Rather than trading materials stocks, ProShare Advisors uses a mathematical approach to set a mix of swaps: contracts, mainly with large global banks, that exchange payments based on the index's moves. If a bank defaults, the fund can lose money. As of August 31, 2026, it reported five total return swaps, and about 99% of its $3.8 million in net assets sat in repurchase agreements, short-term loans usually backed by US government securities.
The fund rebalances daily to hold -2x exposure. If the index rises, the fund's assets shrink and it cuts exposure; if the index falls, it adds exposure. This daily reset means returns over weeks or years can stray far from -2x the index, usually for the worse in choppy markets. The prospectus warns that if the index nears a 50% gain in one day, holders could lose everything.
What it really costs
- SMN charges 0.95% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 5.61% 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 $5,825 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SMN | $97 | $1,441 | $2,743 | $5,825 |
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
SMN resets its -2x inverse bet on materials stocks every day, and its price fell 99.9% from a November 2008 peak to an October 2024 low without recovering.
SMN can jump when materials stocks slump. It gained 103.3% across the 2008 financial crisis, 111.6% in the 2020 COVID crash and 29.3% in the 2022 bear market. But it fell 60.5% from November 20, 2008 to January 6, 2009, and lost 78.2% in 2009, its worst calendar year. From that 2008 peak it dropped 99.9% by October 18, 2024, and had not recovered as of October 27, 2026.
Gains can vanish within weeks: in 2022 it fell 28.4% between July 14 and August 16, bad timing for anyone needing cash. Its 2.28% yield on the same date, paid quarterly, does little to offset that. The 0.95% net expense ratio depends on a fee waiver; the SEC's $10,000 example shows $97 in costs after one year but $1,441 after three. 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 a one-day, -2x bet against S&P 500 materials stocks, such as chemical, mining and packaging companies, and can monitor positions daily.
- Investors seeking a brief hedge (offsetting bet) for materials-heavy stock holdings who accept that results drift from -2x if held longer than a day.
- Traders comfortable with swap counterparty risk, a 0.95% net expense ratio and price swings (volatility) of 75.3% over the year to October 27, 2026.
Look elsewhere if
- Retirees and long-term holders: it lost 99.9% from November 2008 to October 2024 and averaged -25.14% a year over the 10 years through 2025.
- Income seekers: the 2.28% yield as of October 27, 2026, paid quarterly, is dwarfed by a 28.1% peak-to-trough drop over that year.
- Cost-conscious investors: the 0.95% net expense ratio depends on a fee waiver, and the SEC's $10,000 example shows $5,825 in costs over 10 years.
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 SMN a good long-term investment?
It isn't designed to be one. SMN targets -2x the S&P Materials Select Sector Index for a single day, and its prospectus warns that results over longer periods will likely differ, possibly by a lot. Through December 31, 2025, it posted average annual returns of -18.08% over five years and -25.14% over 10 years. Its only calendar-year gains from 2016 through 2025 came in 2018, at 30.6%, and 2024, at 7.19%. It was up 49.4% for 2026 through October 27, showing how sharp short swings can be.
What's the difference between SMN and a regular materials ETF?
SMN bets against materials stocks, while a regular materials index fund owns them and rises when they rise. SMN uses swaps (contracts with banks) to seek two times the opposite of the S&P Materials Select Sector Index's daily return, so it gains on days materials stocks fall and loses on days they climb. Because it resets daily, results over months can differ sharply from -2x. It is also tiny, with about $3.8 million in net assets as of August 31, 2026.
Can you lose all your money in SMN?
Yes. The prospectus warns that if the S&P Materials Select Sector Index nears a 50% gain at any point in a day, holders could lose their entire investment. Losses can also build slowly: the fund's price fell 99.9% from November 20, 2008 to October 18, 2024 and had not recovered as of October 27, 2026. A swap counterparty, typically a large bank, that fails to pay could cause further losses.
Does SMN pay dividends?
Yes. SMN pays distributions quarterly. Over the year to October 27, 2026, it paid $0.44 per share, a trailing yield of 2.28%. Because the fund holds swaps and repurchase agreements rather than stocks, this income most likely reflects interest earned on its cash-like holdings, not company dividends. The payout is small next to the fund's price swings: its one-year volatility, a measure of how widely returns vary, was 75.3% as of the same date.
What is SMN's expense ratio?
SMN's net expense ratio, the yearly fee taken from fund assets, is 0.95%, according to its prospectus filed September 25, 2026. That includes a 0.75% management fee and reflects a fee waiver of 5.61 percentage points. In the SEC's standard example, $10,000 earning 5% a year would incur $97 in costs after one year, $1,441 after three, $2,743 after five and $5,825 after 10. The sharp jump after the first year suggests costs would be far higher without the waiver.