The ProShares Short S&P500 (SH) is an exchange-traded fund designed to deliver the inverse (-1x) of the daily performance of the S&P 500 Index. The ETF is managed by ProShares and trades under the ticker SH on the NYSE Arca.

Classified as an inverse equity ETF, the fund uses financial derivatives to provide daily investment results that correspond to the inverse (-100%) of the S&P 500's daily performance, before fees and expenses. Its strategy allows investors to obtain short exposure to the leading U.S. equity benchmark without engaging in traditional short selling.

The ETF follows an active management approach and seeks to deliver -100% of the daily return of the S&P 500 Index. It is not designed to achieve its stated objective over periods longer than a single trading day because of the effects of compounding.

Diversification and sector exposure

SH provides exposure primarily associated with:

• S&P 500.

• Inverse strategies.

• Derivatives.

• Portfolio hedging.

• U.S. equity market.

• U.S. large-cap stocks.

• Active management.

• Risk management.

Because the ETF seeks the inverse return of the S&P 500, its economic exposure is directly tied to the performance of approximately 500 of the largest publicly traded U.S. companies across multiple sectors.

The fund generally produces positive returns when the S&P 500 declines on a daily basis and negative returns when the index rises.

Structure and costs

SH shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund uses swaps, futures contracts, and other derivatives to obtain inverse exposure to the S&P 500, rebalancing its portfolio daily to maintain its investment objective. The ETF charges a management fee as outlined in its prospectus and does not apply a performance fee.

History and evolution of the ETF

The ProShares Short S&P500 was launched in 2006 as one of the first inverse ETFs providing exposure to the U.S. equity market.

Since inception, the fund has been used by investors seeking to hedge portfolios against market declines or implement short-term tactical strategies without directly short-selling securities.

In recent years, periods of elevated market volatility, changes in monetary policy, economic downturns, and fluctuations in U.S. equity markets have continued to support demand for inverse ETFs as portfolio hedging and risk management tools.

Additional Information

ProShares Short S&P500 (United States) is an exchange-traded fund (ETF), with assets under management totaling $935.48 million.

Over the past 12 months, ProShares Short S&P500 recorded a return of -13.51%, with its price trading between $32.70 and $39.07 during the same period.

The ETF is traded under the ticker SH.