Trade ProShares Trust - ProShares UltraShort S&P500 - SDS CFD

ProShares UltraShort S&P 500 (SDS) is an exchange traded fund (ETF) issued and managed by ProShares Advisors. The fund invests in the US public equity markets.

ProShares itself is a division of ProFund Group, a provider of a diverse mutual funds offering. Launched in 2006, ProShares manages a range of investment funds, specialising in exchange traded funds (ETFs) with more than $60bn in assets. It is known for its leveraged ETFs and inverse funds.

Issued on 11 July 2006, ProShares UltraShort S&P 500 invests in stocks of firms in a variety of industries using derivatives. The fund employs a short strategy and builds its portfolio using derivatives such as futures and swaps. Based in the US, it targets large-cap companies with stocks that guarantee growth and value.

Like most leveraged and inverse products, the fund seeks daily investment returns that are two times the inverse (-2x) of the S&P 500's daily performance, before fees and expenses.

Investors will be exposed to the performance drift caused by compounding if they hold it for a longer period of time. To counteract these dynamics, the instrument should either be kept for no more than one day or rebalanced on a regular basis by adding or subtracting to one's position in the fund.