Share-split context: A reverse split was recorded on Sep 29, 2025 with coefficient 0.1. 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: SPXS

What this ETF is trying to do

The SPXS is an ETF listed on the NYSE. It is a specialized type of fund known as an "inverse" and "leveraged" ETF. This means it is designed to move in the opposite direction of the S&P 500 index. Because it is leveraged, its price movements are intended to be three times larger than the movement of that index.

What the numbers show

The current price of SPXS is $23.45. When looking at how the price has changed, it is important to look at both "price return" and "total return."

• Price Return: This measures only the change in the share price. The year-to-date (YTD) price return is approximately -33.89%. The one-year price return is approximately -37.60%, and the three-year price return is approximately -84.95%.

• Total Return: This includes the effect of distributions. The YTD total return is approximately -31.73%, the one-year total return is approximately -35.20%, and the three-year total return is approximately -82.92%.

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 the investment.

Income and distribution explanation

SPXS has a distribution yield of approximately 4.91%. This represents the cash distributions paid out relative to the ETF price. Over the last 12 months, there were 4 distributions. While some investors look for cash income, a high yield does not guarantee that the investment value will stay stable.

NAV erosion explanation

This ETF has a "severe erosion-risk flag." This means that the split-adjusted price trend and the erosion score triggered a warning. The erosion score is 30, which is labeled as "significant price erosion."

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's assets). While a falling market price is a "share-price decline," an erosion score helps measure the risk that the fund's underlying value is being worn down over time.

Pros

• The ETF provides a distribution yield of approximately 4.91%.

• It is designed to provide inverse exposure to the S&P 500.

Cons

• The ETF shows significant price declines over the one-year and three-year periods.

• It has a severe erosion-risk flag.

• The fund has a history of reverse splits.

Beginner takeaway

SPXS is a highly specialized tool. It is important to remember that high distribution yields can exist even when the share price is falling significantly. Because this fund is leveraged and inverse, its price movements can be very large and carry significant erosion risk.