SPDN will be up against the well-established ProShares Short S&P 500 (NYSEArca: SH), the largest inverse-related U.S.-listed ETF on the market with $3 billion in assets under management.
SPDN, though, comes with a cheaper 0.45% net expense ratio, compared to SH’s 0.90% expense ratio.
Related: Navigating Risks of Leveraged, Inverse ETF Play
Potential traders should be aware of the risks associated with these inverse fund options. The inverse ETF tries to provide a bearish view on the S&P 500 on a daily basis. Consequently, when investors look at the long-term performance of these types of ETFs, people may notice that the funds may not perfectly reflect their intended strategies due to compounding effects. Inverse ETF traders should closely monitor their holdings.
For more information on new fund products, visit our new ETFs category.