SMNProShares UltraShort Basic Materials
SMN Fund Description
SMN provides -200% exposure to a market-cap-weighted index that measures the performance of companies involved in the production of certain metals, chemicals and paper products.
SMN Factset Analytics Insight
SMN is a geared inverse ETN that flips the exposure of the popular basic material ETF IYM on its head, promising to provide 2x the inverse of the fund’s return on a daily basis. The daily distinction is critical, since the fund will start to drift from its -2x target returns over periods of greater than one day. Because of that, the fund's return for periods longer than a day becomes path dependent, and is likely to be different from -2x the return of the index for the same period. Investors seeking to make this leveraged bet on the Dow Jones U.S. Basic Materials Index — a market-cap-weighted basket of US basic material firms that includes coal, should either plan to hold the fund for no longer than one trading day or rebalance their positions frequently. Trading costs are therefore of critical importance here instead of holding costs. Investors must be conscious of the risks associated with leveraged and inverse products before wading in.
SMN Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SMN. SMN is rated a N/A out of 5.