Dallas, Texas 01/08/2014 (FINANCIALSTRENDS) – ProShares UltraShort S&P500 (ETF) (NYSEARCA:SDS) is an exchange traded fund which is advised by ProShare Advisors LLC. It has managed to garner a market capitalization of $1.35 billion. This fund attempts to provide returns to its investors which are 200 percent the inverse of the daily average of S&P 500 index. The S&P 500 index tracks the performance of the largest capped corporates which are traded on the U.S Stock exchanges. ProShares UltraShort S&P500 (ETF) (NYSEARCA:SDS) invests its accumulated funds in the stock of these publicly traded firms tracked by S&P 500 index.
In spite of the strong showing by the S&P 500 index in the past 12 months, the stock of this ETF has been struggling to show returns to its investors. In the trailing 12 months, the stock was down 41.6 percent and these losses continue into the mid-term. In the past six months, the stock was down 21.9 percent and its investors had to bear with a 6 percent dip in value in the past one month.
When trading was suspected for the day on January 8, the stock was trading at $30.05 per share which is 1.18 percent lower than its previous day close. At current valuations, the stock was just 1.3 percent higher than its 52 week low price points. The stock has been range bound between $29.66 and $52.14 per share over the past one year. Readers should also note that the exchange traded fund has not paid out any dividend to its share holders in the past one year.
Analysts are of the opinion that the next six months will be a litmus test for ProShares UltraShort S&P500 (ETF) (NYSEARCA:SDS) and a host of other ETF like it. They predict that as the stock market continues to gain strength in tandem with the speed up in the general economy of U.S, most of the underperforming ETF will come under tremendous pressure to perform or perish.