SDOW -3x ProShares UltraPro Short Dow 30
BEAR ETF extreme · Issuer ProShares · Tracks Dow Jones (DIA) · Listed 2010-02-09
Realized vs theoretical -3x Dow Jones
Cumulative return of SDOW against a clean -3x of Dow Jones's return over the same window; the red line (right axis) is the gap between them.
Other leveraged products on Dow Jones
5| Symbol | Factor | Direction | Issuer | Name | Implied AUM | 30d volume | Options |
|---|---|---|---|---|---|---|---|
| UDOW | +3x | BULL | ProShares | ProShares UltraPro Dow 30 | $837.4M | 1,620,080 | ✓ |
| WEBL | +3x | BULL | Direxion | Direxion Daily Dow Jones Internet Bull 3X ETF | $87.7M | 78,538 | ✓ |
| DDM | +2x | BULL | ProShares | ProShares Ultra Dow30 | $501.8M | 180,539 | ✓ |
| DXD | -2x | BEAR | ProShares | ProShares UltraShort Dow 30 | $43.7M | 2,511,089 | ✓ |
| WEBS | -3x | BEAR | Direxion | Direxion Daily Dow Jones Internet Bear 3X ETF | $7.1M | 43,184 | ✓ |
How SDOW works
SDOW targets -3x the daily return of Dow Jones — not the return over longer windows. It rebalances every day, so over weeks and months its result drifts away from -3x × the index, usually downward when the market chops around.
The maths: the drag is roughly −½ × N × (N−1) × σ² per period (N = leverage, σ = the index's volatility). For a -3x fund on an index with 25% annual volatility that is several percent a year before fees — the red line above is that drag measured.
Short-term trades (a day or a few) are what these funds are built for. Premium sellers like their rich option IV — see the quote page. Multi-day directional bets work in strong trends and get eaten in chop.
Not investment advice.