ProShares Short MidCap400 (MYY)

Overview

ProShares Short MidCap400 (MYY) seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the S&P MidCap 400 Index. It provides a way for investors to potentially profit from a decline in the value of mid-capitalization U.S. stocks.

Reputation and Reliability

ProShares is a well-known provider of leveraged and inverse ETFs, with a reputation for creating innovative and sophisticated investment products.

Management Expertise

ProShares has a team of experienced investment professionals who specialize in the creation and management of complex ETFs.

Goal

To provide daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P MidCap 400 Index.

Investment Approach and Strategy

Strategy: The ETF employs a swap-based strategy to achieve its inverse objective. It typically invests in financial instruments such as swap agreements, futures contracts, and options contracts.

Composition The ETF does not hold physical stocks of the S&P MidCap 400 Index. Its portfolio primarily consists of derivatives.

Market Share: MYY's market share is limited as a specialized inverse ETF targeting a specific market segment.

Total Net Assets (AUM): 51570000

Key Competitors

• SH
• SDS
• SPXU

Competitive Landscape

The inverse ETF market is competitive, with several large players offering similar products. MYY differentiates itself by specifically targeting the S&P MidCap 400 Index. MYY's main disadvantage is its higher volatility and potential for performance drag due to daily rebalancing, compared to directly shorting stocks, but it avoids margin calls. Other competitor ETFs have higher AUM.

Historical Performance: Historical performance data is subject to change, but inverse ETFs have negative performance in uptrend markets. Performance is highly dependent on the S&P MidCap 400 Index.

Benchmark Comparison: MYY should perform inversely to the S&P MidCap 400 Index. However, due to daily rebalancing, there might be tracking differences over longer time periods.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume for MYY is moderate and varies based on market conditions.

Bid-Ask Spread

The bid-ask spread for MYY is typically moderate, reflecting its trading volume.

Market Environment Factors

Economic indicators, interest rates, and overall market sentiment greatly affect MYY. A negative economic outlook for mid-cap companies will likely impact the ETF's performance positively.

Growth Trajectory

The ETF's growth trajectory depends on the market's expectation of the future performance of mid-cap stocks.

Competitive Edge

MYY offers a targeted way to profit from short-term declines in mid-cap stocks, with a convenient ETF structure. Its main advantage lies in offering an easily accessible and liquid way to implement a bearish strategy. It avoids the need to directly short individual stocks. The fund is not suitable for long-term investment because it is designed to achieve its stated investment objective on a daily basis.

Volatility

MYY exhibits high volatility due to its inverse nature and daily rebalancing.

Market Risk

MYY is exposed to market risk as its performance is directly linked to the S&P MidCap 400 Index. It is also exposed to risks associated with derivatives such as swaps and futures.

Ideal Investor Profile

MYY is suitable for sophisticated investors with a high-risk tolerance who seek to profit from short-term declines in mid-cap stocks.

Market Risk

MYY is best suited for active traders with a short-term investment horizon, not long-term investors.

ProShares Short MidCap400 is designed to deliver the inverse of the daily performance of the S&P MidCap 400 Index, using derivatives. Its geared towards sophisticated investors with a short-term investment horizon and an appetite for higher risks. Due to daily rebalancing, returns over longer periods can deviate significantly from the simple inverse of the index's performance. It is important to note that the ETF's performance is heavily dependent on the underlying index, and the ETF is unsuitable for long-term holdings.

• SH
• SDS
• SPXU

Data Sources:

• ProShares official website
• Financial news websites
• Investment analysis platforms

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Investment decisions should be made based on individual circumstances and after consultation with a qualified financial advisor.