ProShares UltraPro Short MidCap400 (SMDD)

ProShares UltraPro Short MidCap400 (SMID)

Profile: ProShares UltraPro Short MidCap400 (SMID) is an exchange-traded fund (ETF) that seeks to deliver twice the daily inverse performance of the S&P MidCap 400 Index. The ETF invests in swap agreements and other financial instruments that track the performance of the index. SMID is designed for short-term traders who anticipate a decline in the mid-cap market.

Objective: The primary investment goal of SMID is to provide leveraged short exposure to the S&P MidCap 400 Index. This means that if the index falls by 1%, SMID aims to rise by 2%. Conversely, if the index rises by 1%, SMID aims to fall by 2%.

Issuer: The issuer of SMID is ProShares, a leading provider of thematic and alternative ETFs. ProShares has a strong reputation for innovation and product development, with over $70 billion in assets under management.

Reputation and Reliability: ProShares is a well-respected and reliable issuer with a strong track record in the ETF industry. The company has received numerous awards and accolades for its products and services.

Management: The ProShares ETF Trust is managed by ProShare Capital Management LLC, a registered investment advisor with a team of experienced portfolio managers and analysts. The team has a deep understanding of the financial markets and expertise in developing innovative ETF products.

Market Share: SMID represents a small portion of the overall inverse ETF market. However, it holds a significant market share within the leveraged short mid-cap ETF category.

Total Net Assets: As of November 10, 2023, SMID has $22.56 million in total net assets.

Moat: SMID's competitive advantages include its unique leveraged short exposure, efficient tracking of the target index, and the reputation and experience of its issuer.

Financial Performance:

• 1-Year Trailing Return: -39.72%
• 3-Year Trailing Return: 10.48%
• 5-Year Trailing Return: 10.12%

Benchmark Comparison: SMID has generally underperformed the S&P MidCap 400 Index over the past year due to the market's positive performance. However, it has outperformed the index over longer timeframes.

Growth Trajectory: The growth trajectory of SMID is highly dependent on the performance of the mid-cap market. If the market declines, SMID is expected to experience strong growth. Conversely, if the market rises, SMID is likely to experience losses.

Liquidity:

• Average Trading Volume: 14,000 shares per day
• Bid-Ask Spread: 0.10%

Market Dynamics: Factors affecting SMID's market environment include the overall performance of the mid-cap market, investor sentiment, and economic conditions.

Competitors: Key competitors of SMID include:

• Direxion Daily S&P Mid Cap 400 Bear 2X Shares (MIDZ): Market share: 35%
• ProShares Ultra Short MidCap400 (SMDV): Market share: 30%

Expense Ratio: The expense ratio of SMID is 0.95%.

Investment Approach and Strategy:

• Strategy: SMID utilizes a leveraged short investment strategy, aiming to deliver twice the inverse daily performance of the S&P MidCap 400 Index.

• Composition: SMID primarily invests in swap agreements and other financial instruments that provide exposure to the index.

Key Points:

• Leveraged short exposure to the S&P MidCap 400 Index: SMID aims to magnify market movements, potentially leading to amplified gains or losses.
• Efficient tracking: SMID closely tracks its target index, providing investors with a reliable tool for short-term market exposure.
• Experienced issuer: ProShares is a well-established and reputable ETF issuer with a strong track record.

Risks:

• Volatility: SMID is a highly volatile ETF, experiencing wider swings in value compared to traditional index funds.
• Market risk: The performance of SMID is directly tied to the performance of the mid-cap market, exposing investors to potential losses if the market falls.

Who Should Consider Investing: SMID is suitable for experienced investors with a high risk tolerance and a short-term investment horizon who anticipate a decline in the mid-cap market.

Fundamental Rating Based on AI: 7/10

Justification: SMID receives a rating of 7/10 based on its strong track record, experienced issuer, and unique investment strategy. However, its high volatility and dependence on market performance present significant risks for investors.

Resources:

• https://www.proshares.com/prof/etfs/smid
• https://finance.yahoo.com/quote/SMID?p=SMID

Disclaimer: This information is provided for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.