Dallas, Texas 10/24/2013 (Financialstrend) – ProShares UltraShort S&P500 (ETF) (NYSEARCA:SDS) is an exchange traded fund which has been struggling to meet its own expectations over the past few quarters. As of close of business on October 23, the stock of this fund is trading at $33.71 per share which translates to a 38% dip over the past 12 months. At the current valuations, the stock is trading very close to its 52 week low pricing and is 45% down from its 52 week high pricing. Share holders who are invested into the stock have not seen any dividend payout from this ETF. Hence it is difficult to see how the traded fund will continue to sustain and attract new investors.
The investment philosophy of the fund which was previously christened as “UltraShort S&P500 ProShares” is to track its daily returns and growth against the bench mark provided by S&P 500 index. The S&P 500 index lists some of the largest capitalized companies which trade on U.S browsers and tracks companies based on the return on their market price. The ETF has in the past has taken advice from Proshare Advisors to invest and build portfolio which should yield close to 200% of the S&P daily return.
Over the past two days of trading the stock of this ETF has inhabited the “Oversold” quadrant, having traded at near 52 week low pricing. The stock has been trading 18.3% lower than its 200 day moving average with close to 7.9 million shares of the stock changing hands yesterday in comparison to daily average of 10.28 million. Analysts who have made money through bargain shopping for stock which are trading at low prices have advised investors that it might be a good time to buy the sock considering the bull run has almost exhausted itself and is probably poised to see growth over the next few weeks.