Share-split context: A reverse split was recorded on Jun 12, 2025 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.

ETF Education Report: SMDD

What this ETF is trying to do

The ProShares UltraPro Short MidCap400 -3x Shares (ticker: SMDD) is a specialized type of fund. It is both "leveraged" and "inverse." This means it is designed to move in the opposite direction of a specific group of mid-sized companies. Because it is "3x" leveraged, its goal is to provide three times the inverse performance of its target index.

What the numbers show

The data shows that this ETF has experienced significant share-price declines over various timeframes.

• Year-to-Date (YTD): The price return is approximately -28.42%. The total return is approximately -26.86%.

• One Year: The price return is approximately -33.11%. The total return is approximately -30.81%.

• Three Years: The price return is approximately -78.23%. The total return is approximately -75.57%.

It is important to understand the difference between these numbers. The price return only measures how much the share price changed. The total return includes both the price change and any distributions (cash payments) made to investors.

This ETF also has a history of reverse splits. A reverse split happens when multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically, but it does not restore lost investment value.

Income and distribution explanation

SMDD has a distribution yield of approximately 3.76%. This represents the cash distributions relative to the ETF price. Over the last 12 months, there were 4 payouts, which usually happen quarterly.

While some investors look for high yields to get cash income, a high yield alone can be misleading. A fund can pay out cash even while its share price is falling significantly.

NAV erosion explanation

This ETF has a severe erosion-risk flag. This means StockValueFinder's rules detected substantial price deterioration. The fund has an erosion score of 30, which is labeled as "Significant price erosion."

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price is a "share-price decline," the erosion score and flag serve as measurements of risk regarding the fund's value stability.

Pros

• The fund provides a distribution yield of approximately 3.76%.

Cons

• The fund has experienced large share-price declines over the last year and three years.

• It carries a severe erosion-risk flag.

• The fund has a history of reverse splits.

Beginner takeaway

SMDD is a highly complex, leveraged, and inverse ETF. It has shown significant price declines over the long term. When looking at funds like this, it is important to distinguish between the cash you receive (distribution yield) and the actual change in the value of your investment (total return). High yields do not protect against a declining share price.