MZZ -2x ProShares UltraShort MidCap400

MZZ

ETF -2x BEAR standard
ProShares UltraShort MidCap400
Issuer: ProShares · Tracks: S&P MidCap 400 (MDY) · Listed: 2006-07-11
Implied AUM
$2.5M
Last Close
$6.11
20260720
30d Avg Vol
7,705
Options
available
Realized return vs theoretical -2x S&P MidCap 400
Pair counterpart found: MVV (+2x bull, ProShares Ultra MidCap400)
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 S&P MidCap 400
Symbol Factor Direction Issuer Name Implied AUM 30d Vol Options
UMDD +3x BULL ProShares ProShares UltraPro MidCap400 $31.9M 7,836
MVV +2x BULL ProShares ProShares Ultra MidCap400 $151.6M 11,227
SMDD -3x BEAR ProShares ProShares UltraPro Short MidCap400 $2.1M 9,838

How MZZ works

MZZ targets -2x the daily return of S&P MidCap 400 — 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 MZZ 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.