SDP -2x ProShares UltraShort Utilities

BEAR ETF standard · Issuer ProShares · Tracks Utilities (XLU) · Listed 2007-01-30

Quote & options All leveraged ETFs
Implied AUM
$4.8M
shares out × price
Last close
$27.74
20261001
30-day avg volume
15,501
options listed →
SDP realized
—
what holders actually earned
Theoretical -2x
—
-2x × Utilities's return
Decay gap
—
realized minus theoretical

Realized vs theoretical -2x Utilities

Cumulative return of SDP against a clean -2x of Utilities's return over the same window; the red line (right axis) is the gap between them.

Pair counterpart: UPW (+2x bull, ProShares Ultra Utilities)
Shorting both legs of a daily-reset bull/bear pair captures their combined decay over time. It isn't free money — the edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow shares.

Other leveraged products on Utilities

2
SymbolFactorDirectionIssuerNameImplied AUM30d volumeOptions
UTSL +3x BULLDirexionDirexion Daily Utilities Bull 3X ETF $44.5M 211,135 ✓
UPW +2x BULLProSharesProShares Ultra Utilities $10.5M 27,763 ✓

How SDP works

SDP targets -2x the daily return of Utilities — not the return over longer windows. It rebalances every day, so over weeks and months its result drifts away from -2x × 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 -2x 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.