SPXS Fund Description
The Daily S&P 500 Bear 3X provides 3x inverse exposure to a market-cap-weighted index of 500 of the largest and most liquid US companies.
SPXS Factset Analytics Insight
SPXS is an extremely aggressive bet against the S&P 500, promising to provide -300% of the index's return for a one-day period. The fund, like most geared inverse products, is designed to deliver its 3x inverse exposure to the S&P 500—a cap-weighted basket of 500 of the largest firms in the U.S.—for one trading day. Holding it for a period longer than that will introduce the effects of compounding, a dynamic that's increasingly pronounced as you add more leverage to the strategy. If the fund is held more than one day, your position will need to be adjusted daily to maintain the -3x multiple. SPXS is slightly more expensive than its competitor SPXU and slightly less liquid, though it's still easy to come and go withtrade SPXS on a large or small scale. Investors should be comfortable with not just the mechanics of the portfolio but the counterparty risk it takes on to get its exposure: SPXS holds swaps on the index to achieve its goals.
SPXS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SPXS. SPXS is rated a 5 out of 5.