The ProShares Short S&P500 ETF (SH) provides inverse exposure to a market-cap-weighted index of 500 large- and mid-cap U.S. firms selected by the S&P Index Committee.
The fund is large and liquid, which is vital for its use as a short-term, tactical investing tool. The fee here is high, which is important to note, especially for long-term traders, because trading costs are more important as the fund is not designed to be held for an extended period of time.
The ETF has $1.91 billion in assets under management, a 0.04% spread and a 0.89% expense ratio, meaning it is more expensive to hold relative to other exchange-traded funds. It currently trades around $24 a share and has a 1.76% yield. Its next distribution date is on March 25.
Chart courtesy of StockCharts.com
The ProShares Short S&P500 has an MSCI ESG Fund Rating of A, based on a score of 6.58 out of 10. The MSCI ESG Fund Rating measures the resiliency of portfolios to long-term risks and opportunities arising from environmental, social and governance factors. ESG Fund Ratings range from best (AAA) to worst (CCC). Highly rated funds consist of companies that tend to show strong and/or improving management of financially relevant environmental, social and governance issues.
In short, SH is a potentially good ETF for short-term traders looking to gain inverse exposure to the S&P 500. However, I urge interested investors to, as with any investment, conduct their own due diligence in deciding whether this fund is right for their individual portfolio goals.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.