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 Materials (SMN)

What this ETF is trying to do

ProShares UltraShort Materials (ticker: SMN) is an exchange-traded fund (ETF) designed for a specific type of strategy. It is both an inverse and leveraged ETF. This means it is built to move in the opposite direction of the materials sector, often with more intensity than a standard investment. Because it is an inverse fund, it typically aims to gain value when the materials sector goes down.

What the numbers show

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

• Year-to-Date (YTD): The price return is approximately -17.81%. When including distributions, the YTD total return is approximately -16.54%.

• One Year: The price return was approximately -21.32%, while the one-year total return was approximately -19.21%.

• Three Years: The price return was approximately -46.00%, and the three-year total return was approximately -38.80%.

• Five Years: The five-year total return was approximately -56.20%.

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 quoted per-share price to rise mechanically, but it does not increase the actual value of the investment. This ETF has had 6 reverse split events in its history, with the most recent occurring on May 28, 2026.

Income and distribution explanation

SMN provides cash distributions to investors. The current distribution yield is approximately 2.01%. Over the last 12 months, there were 4 distributions, which usually happen on a quarterly basis. The trailing distributions total approximately $0.43 per share.

When looking at these numbers, remember that the distribution yield is not the same as total return. While distributions provide cash, they are separate from the changes in the share price.

NAV erosion explanation

The fund has an erosion-risk score of 55, which is labeled as "Moderate price erosion." This indicates a moderate level of risk regarding the decline in the fund's share price.

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. While the share price has declined significantly, we cannot use this data alone to prove that the Net Asset Value (NAV) itself has eroded.

Pros

• Inverse Strategy: It provides a way to potentially profit from a decline in the materials sector.

• Leverage: It is designed to provide amplified movement compared to a standard inverse fund.

Cons

• Price Decline: The fund has shown significant negative price returns over the one-year, three-year, and five-year periods.

• Complexity: As a leveraged and inverse ETF, it carries unique risks compared to traditional funds.

• Reverse Splits: The history of reverse splits is a structural characteristic of the fund.

Beginner takeaway

SMN is a specialized tool used to bet against the materials sector. Because it is leveraged and inverse, its price can move very quickly. Investors should be aware that the fund has experienced substantial share-price declines over the last several years and carries a moderate price erosion risk. High yields or distributions do not offset the overall decline in total return shown in the historical data.