DXD -2x ProShares UltraShort Dow 30
DXD
ETF -2x BEAR standardProShares UltraShort Dow 30
Realized return vs theoretical -2x Dow Jones
Pair counterpart found:
DDM
(+2x bull, ProShares Ultra Dow30)
Shorting both legs of a daily-reset bull/bear pair captures combined decay drift over time. Theoretical "free money" — actual edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow products.
Other leveraged products tracking Dow Jones
| Symbol | Factor | Direction | Issuer | Name | Implied AUM | 30d Vol | Options |
|---|---|---|---|---|---|---|---|
| UDOW | +3x | BULL | ProShares | ProShares UltraPro Dow 30 | $846.4M | 1,793,766 | |
| WEBL | +3x | BULL | Direxion | Direxion Daily Dow Jones Internet Bull 3X ETF | $90.2M | 302,231 | |
| DDM | +2x | BULL | ProShares | ProShares Ultra Dow30 | $530.0M | 175,876 | |
| SDOW | -3x | BEAR | ProShares | ProShares UltraPro Short Dow 30 | $171.9M | 4,101,183 | |
| WEBS | -3x | BEAR | Direxion | Direxion Daily Dow Jones Internet Bear 3X ETF | $8.1M | 74,971 |
How DXD works
DXD targets -2x the daily return of Dow Jones — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.
Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a -2x product on an underlying with 25% annualized vol, expected annual drag is around 6.2%. Add expense ratio and the realized number is typically worse.
- Short-term tactical: daily and intraday holds are where these products were designed to live.
- Premium selling: options on DXD carry very rich IV — see the quote page for IV rank and straddle pricing.
- Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.