Share-split context: A reverse split was recorded on May 28, 2026 with coefficient 0.5. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

Understanding ProShares UltraShort Utilities -2x Shares (SDP)

What this ETF is trying to do

ProShares UltraShort Utilities -2x Shares (SDP) is an exchange-traded fund (ETF) designed for a specific type of strategy. It is both an inverse ETF and a leveraged ETF. This means it aims to move in the opposite direction of the utilities sector, and it seeks to provide twice (2x) the inverse performance of that sector.

What the numbers show

The performance data for SDP shows significant differences depending on how long you look at the fund.

• Year-to-Date (YTD): The price return is approximately 3.14%. When including distributions, the YTD total return is approximately 4.89%.

• One Year: The one-year price return is approximately 12.55%. The one-year total return is approximately 16.74%.

• Three Years: The three-year price return is approximately -58.92%. The three-year total return is approximately -54.21%.

• Five Years: The five-year total return is approximately -52.55%.

It is important to note that this ETF has a history of reverse splits. In a reverse split, multiple old shares are combined into fewer new shares. This causes the price per share to rise mechanically, but it does not increase the actual value of your investment. Because this ETF has a split history, an estimated price from one year ago is not provided; instead, we use the split-adjusted percentage returns listed above.

Income and distribution explanation

SDP provides cash distributions to shareholders. The trailing distributions are approximately 0.6161, which results in a distribution yield of approximately 2.39%. These payments usually happen on a quarterly basis, and over the last year, there were 4 payouts.

When looking at these numbers, remember that "price return" only tracks the change in the share price. "Total return" is a different measurement that includes both the share price changes and the distributions.

NAV erosion explanation

Some investors look for "NAV erosion," which refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Regarding price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected," and an erosion severity of "good." There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown positive price and total returns over the last year.

• It provides a distribution yield of approximately 2.39%.

Cons

• The fund has experienced significant negative total returns over three-year and five-year periods.

• Because it is a leveraged and inverse ETF, it is designed for specific market views rather than long-term holding.

Beginner takeaway

SDP is a specialized tool used to bet against the utilities sector with 2x leverage. While it has seen positive returns over the past year, its long-term three-year and five-year total returns have been negative. Always remember that a distribution yield is a measure of cash paid out, not a guarantee of total profit.