With the S&P 500 Index yet again breaching its 200 day Simple Moving Average, which of course due to its dynamics and relative mathematical simplicity as a trailing formula and thus number, we have had interest and questions in recent sessions about various “Inverse” and “Leveraged Inverse” funds that track the index such as SH (ProShares Short S&P 500, Expense Ratio 0.89%).
SH is the largest “Inverse (Non-Leveraged) Equity” ETF in the U.S. listed landscape and will clearly continue to be in focus given the continued interest in the S&P 500 in the context of its 200 day SMA.
Currently SH holds $1.57 billion in assets under management with a noticeable lead over the next largest fund in the broad “Inverse (Non-Leveraged) Equity” category which is RWM (ProShares Short Russell 2000, Expense Ratio 0.95%). Neither ETF incorporates leverage but instead are designed to provide the daily inverse return of their stated underlying indexes, in this case the S&P 500 and the Russell 2000 accordingly.
But back to the S&P 500, even when compared to a prominent leveraged inverse equity, also from ProShares, SDS (ProShares UltraShort S&P 500, Expense Ratio 0.89%) holds its own in terms of AUM size. SDS presently has $1.26 billion in assets under management so it is smaller than SH, but as expected has higher daily turnover at about 8.9 million shares versus 1.4 million shares traded daily.
A lesser known fund is also picking up interest here with the “S&P 500 200 day MA” mania abound, and that is SPXU (ProShares UltraProShort S&P 500, Expense Ratio 0.92%) which averages more than 4.4 million shares daily and has about $483 million in AUM.
SDS is designed to deliver two times the daily inverse return of the S&P 500 while SPXU is structured to return three times the daily inverse return of the same index.