SRTY 3x Short
ProShares UltraPro Short Russell2000
Shorts: Russell 2000 (IWM)
Expense Ratio
0.95%
Leverage
3x Inverse
Issuer
ProShares
Inception
Feb 2010
SRTY ETF Fact Check
| What it is | SRTY is ProShares UltraPro Short Russell2000, an inverse ETF tied to Russell 2000 (IWM). |
|---|---|
| Daily target | 3x Inverse exposure before fees, expenses, tracking error, and daily compounding effects. |
| Cost check | Expense ratio shown here: 0.95%. Verify the latest fee, holdings, and prospectus on the issuer page before trading. |
| Holding-period check | Leveraged inverse ETFs are designed around daily objectives; multi-day returns can diverge sharply from the simple inverse multiple. |
Source checks: ProShares ETF pages for current fund documents and the SEC/FINRA leveraged and inverse ETF bulletin for daily reset risk. Inception shown here: Feb 2010.
High Risk Leveraged Product
SRTY is a 3x leveraged inverse ETF designed for short-term trading only. Daily rebalancing causes significant decay over time. NOT suitable for buy-and-hold investors.
What SRTY Shorts
The ProShares UltraPro Short Russell2000 (SRTY) is designed to deliver -3x the daily performance of the Russell 2000 Index. This index tracks approximately 2,000 small-capitalization U.S. companies.
SRTY achieves its inverse leveraged exposure through the use of financial derivatives like swap agreements. It is rebalanced daily to target -300% of the index's daily move, making it a tool for short-term trading or hedging against small-cap declines.
Key Risks
- Compounding Risk: Daily reset causes returns over periods longer than one day to diverge from 3x the inverse of the index's cumulative return.
- High Volatility & Loss Risk: The 3x leverage magnifies losses; the ETF can lose significant value quickly, even in sideways markets.
- Expense Ratio: At 0.95%, the high cost erodes returns over time.
- Counterparty Risk: Relies on derivatives and swap agreements with financial institutions.
- Strictly Short-Term Instrument: Not suitable for buy-and-hold investing due to decay in volatile or trending markets.
Best Use Cases
- Short-Term Bearish Bet: For traders with a strong conviction of a near-term decline in small-cap stocks.
- Portfolio Hedge: To temporarily hedge a portfolio's exposure to small-cap equities.
- Tactical Allocation: As a tactical, high-risk tool within a broader trading strategy, typically held for a single day or a few days.