ProShares - UltraShort Consumer Discretionary (SCC)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
ProShares - UltraShort Consumer Discretionary (SCC) with AI Score 50/100 (Hold). ProShares UltraShort Consumer Discretionary (SCC) is an exchange-traded fund (ETF) that seeks to deliver twice the inverse of the daily performance of the S&P Consumer Discretionary Select Sector Index. Market cap: 0, Sector: Financial services.
Last analyzed: Mar 17, 2026ProShares - UltraShort Consumer Discretionary (SCC) Financial Services Profile
ProShares UltraShort Consumer Discretionary (SCC) offers investors a leveraged inverse exposure to the S&P Consumer Discretionary Select Sector Index, aiming for -2x the daily performance. As a specialized ETF, SCC caters to sophisticated investors seeking short-term hedging or speculative opportunities within the consumer discretionary market.
Investment Thesis
ProShares UltraShort Consumer Discretionary (SCC) presents a tactical investment vehicle for investors with a short-term bearish outlook on the consumer discretionary sector. The ETF's -2x leverage offers the potential for amplified gains when the S&P Consumer Discretionary Select Sector Index declines. However, the daily rebalancing and compounding effects make it unsuitable for long-term holdings. Key to SCC's utility is the investor's ability to accurately predict short-term market movements in the consumer discretionary sector. Factors such as rising interest rates, inflation, or a decline in consumer confidence could serve as catalysts for a downturn in the sector, potentially benefiting SCC. However, investors must be aware of the risks associated with leveraged ETFs, including the potential for significant losses if the index moves against their position. The fund's expense ratio and trading costs should also be considered when evaluating its potential returns. Given its leveraged nature, SCC is best suited for experienced traders who understand the complexities of inverse ETFs and can actively manage their positions.
Based on FMP financials and quantitative analysis
Key Highlights
- Seeks -2x the daily performance of the S&P Consumer Discretionary Select Sector Index, offering a leveraged inverse exposure.
- Designed for short-term trading strategies due to daily rebalancing and compounding effects.
- Expense ratio reflects the cost of managing a leveraged and inverse ETF.
- Provides a tool for investors to hedge against potential declines in the consumer discretionary sector.
- Performance is highly sensitive to daily movements in the underlying index, requiring active monitoring.
Competitors & Peers
Strengths
- Leveraged inverse exposure provides potential for high returns in a declining market.
- Offers a tool for hedging against losses in consumer discretionary holdings.
- Managed by an experienced provider of leveraged and inverse ETFs.
- Trades on major exchanges, providing liquidity.
Weaknesses
- Not suitable for long-term investment due to compounding effects.
- High expense ratio compared to traditional ETFs.
- Performance is highly sensitive to daily market movements.
- Potential for significant losses if the index moves against the position.
Catalysts
- Upcoming: Release of consumer confidence data, which could impact the consumer discretionary sector.
- Ongoing: Rising interest rates potentially dampening consumer spending.
- Ongoing: Geopolitical events creating market uncertainty and volatility.
Risks
- Potential: Unexpected positive economic data boosting consumer spending.
- Potential: Changes in regulations impacting leveraged and inverse ETFs.
- Ongoing: High expense ratio eroding potential returns.
- Ongoing: Compounding effects leading to divergence from the stated multiple over time.
Growth Opportunities
- Increased Volatility in Consumer Discretionary Sector: Heightened market volatility within the consumer discretionary sector can create more trading opportunities for SCC. Events such as unexpected economic data releases, geopolitical tensions, or company-specific news can lead to sharp price swings, potentially benefiting SCC's leveraged inverse strategy. The market size for leveraged and inverse ETFs is projected to grow as investors seek tools to navigate uncertain market conditions. Timeline: Ongoing.
- Rising Interest Rate Environment: As interest rates rise, consumer spending may decline, negatively impacting the consumer discretionary sector. This scenario could increase demand for SCC as investors seek to hedge against or profit from a downturn in these stocks. The potential market size is significant, given the large capitalization of the consumer discretionary sector. Timeline: Ongoing.
- Decline in Consumer Confidence: A drop in consumer confidence can lead to reduced spending on discretionary items, negatively affecting the performance of companies in the sector. This could drive increased interest in SCC as investors anticipate a decline in consumer discretionary stocks. The impact of consumer confidence on the sector is well-documented, making this a potential catalyst for SCC. Timeline: Ongoing.
- Expansion of ETF Trading Platforms: The growth of online brokerage platforms and the increasing accessibility of ETFs to retail investors can expand the potential market for SCC. As more investors become aware of leveraged and inverse ETFs, the demand for SCC may increase. The market size for online trading platforms is substantial and continues to grow. Timeline: Ongoing.
- Strategic Partnerships with Financial Advisors: Collaborating with financial advisors to educate them about the uses and risks of leveraged and inverse ETFs can increase the adoption of SCC among their clients. Financial advisors play a key role in guiding investment decisions, and their endorsement can significantly boost the demand for SCC. The market size for financial advisory services is substantial, offering a significant opportunity for SCC. Timeline: Ongoing.
Opportunities
- Increased market volatility in the consumer discretionary sector.
- Rising interest rate environment.
- Decline in consumer confidence.
- Expansion of ETF trading platforms.
Threats
- Unexpected positive performance of the consumer discretionary sector.
- Changes in regulations governing leveraged and inverse ETFs.
- Increased competition from other leveraged and inverse ETF providers.
- Economic recovery leading to increased consumer spending.
Competitive Advantages
- Brand recognition as a leading provider of leveraged and inverse ETFs.
- Established track record in managing complex ETF products.
- Deep expertise in the consumer discretionary sector and its drivers.
- Strong relationships with major exchanges and brokerage platforms.
About SCC
ProShares UltraShort Consumer Discretionary (SCC) is a financial instrument designed for sophisticated investors seeking to profit from, or hedge against, short-term declines in the consumer discretionary sector. Established by ProShares, a leading provider of leveraged and inverse ETFs, SCC offers a way to gain inverse exposure to the S&P Consumer Discretionary Select Sector Index. Unlike traditional ETFs that track an index's performance, SCC aims to deliver two times the inverse (-2x) of the index's daily performance, before fees and expenses. This means that if the S&P Consumer Discretionary Select Sector Index falls by 1% on a given day, SCC aims to increase by 2%, and vice versa. The fund's objective makes it a tool for investors who have a bearish outlook on the consumer discretionary sector, which includes companies involved in retail, media, apparel, hotels, restaurants, and leisure products. SCC is not intended for long-term investment due to the effects of compounding, which can cause its performance to diverge significantly from the stated multiple of the index's return over extended periods. The ETF is rebalanced daily to maintain its -2x leverage, which adds to its operational complexity and cost. ProShares, the fund's manager, has extensive experience in managing leveraged and inverse ETFs, offering a range of products across various sectors and asset classes. SCC is available for trading on major exchanges, providing liquidity for investors looking to implement short-term trading strategies.
What They Do
- Offers leveraged inverse exposure to the S&P Consumer Discretionary Select Sector Index.
- Seeks to deliver two times the inverse (-2x) of the index's daily performance.
- Provides a tool for investors to profit from a decline in consumer discretionary stocks.
- Allows investors to hedge against potential losses in their consumer discretionary holdings.
- Rebalances its portfolio daily to maintain its -2x leverage.
- Trades on major exchanges, providing liquidity for investors.
Business Model
- Generates revenue through management fees charged on the fund's assets under management (AUM).
- The expense ratio covers the costs of managing the fund, including trading expenses and administrative fees.
- Daily rebalancing ensures the fund maintains its -2x leverage, but also incurs trading costs.
Industry Context
ProShares UltraShort Consumer Discretionary (SCC) operates within the asset management industry, specifically in the niche of leveraged and inverse ETFs. The ETF market has experienced significant growth in recent years, with investors increasingly seeking specialized products to express their market views. SCC competes with other leveraged and inverse ETFs that target specific sectors or broad market indices. The performance of consumer discretionary stocks is influenced by macroeconomic factors such as consumer spending, interest rates, and employment levels. As of 2026, the asset management industry is characterized by increasing competition and a growing demand for innovative investment strategies.
Key Customers
- Sophisticated investors seeking short-term trading opportunities.
- Hedge funds and other institutional investors using leveraged and inverse ETFs for hedging purposes.
- Financial advisors looking to provide clients with tools to express bearish views on the consumer discretionary sector.
- Experienced traders who understand the risks and complexities of leveraged ETFs.
Financials
Chart & Info
ProShares - UltraShort Consumer Discretionary (SCC) stock price: Price data unavailable
Latest News
No recent news available for SCC.
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SCC.
Price Targets
Wall Street price target analysis for SCC.
MoonshotScore
What does this score mean?
The MoonshotScore rates SCC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
ProShares - UltraShort Consumer Discretionary Stock: Key Questions Answered
What does ProShares - UltraShort Consumer Discretionary do?
ProShares UltraShort Consumer Discretionary (SCC) is a specialized exchange-traded fund designed to provide investors with twice the inverse (-2x) of the daily performance of the S&P Consumer Discretionary Select Sector Index. It allows investors to potentially profit from a decline in the consumer discretionary sector or hedge against existing long positions in those stocks. The fund is rebalanced daily to maintain its leverage, making it a short-term trading tool rather than a long-term investment.
What do analysts say about SCC stock?
Given that SCC is an ETF designed to reflect the inverse performance of an index, traditional analyst ratings do not directly apply. Instead, analysis focuses on the outlook for the consumer discretionary sector and the suitability of leveraged inverse ETFs for specific investment strategies. Investors should carefully consider their risk tolerance and investment horizon before investing in SCC, as it is designed for short-term tactical trading rather than long-term holding.
What are the main risks for SCC?
The primary risks associated with ProShares UltraShort Consumer Discretionary (SCC) include the potential for significant losses due to its leveraged nature, the effects of compounding over time, and the high expense ratio. Because SCC seeks to deliver twice the inverse of the index's daily performance, any positive movement in the consumer discretionary sector can result in amplified losses. The daily rebalancing can also lead to a divergence between the fund's performance and the stated multiple of the index's return over extended periods. Investors should carefully consider these risks before investing in SCC.
How does ProShares - UltraShort Consumer Discretionary generate revenue in the financial services sector?
ProShares UltraShort Consumer Discretionary (SCC) generates revenue through management fees charged on its assets under management (AUM). These fees are calculated as a percentage of the fund's AUM and are used to cover the costs of managing the fund, including trading expenses, administrative fees, and the compensation of the fund's managers. The expense ratio, which represents the total annual cost of owning the fund, reflects these fees. The fund's profitability is directly tied to its ability to attract and retain assets under management.
How sensitive is SCC to changes in consumer spending patterns?
ProShares UltraShort Consumer Discretionary (SCC) is highly sensitive to changes in consumer spending patterns, as it seeks to deliver twice the inverse of the daily performance of the S&P Consumer Discretionary Select Sector Index. A decrease in consumer spending, driven by factors such as rising interest rates, inflation, or a decline in consumer confidence, can negatively impact the performance of companies in the consumer discretionary sector, potentially benefiting SCC. Conversely, an increase in consumer spending can lead to losses for SCC.
What are the key factors to evaluate for SCC?
ProShares - UltraShort Consumer Discretionary (SCC) currently holds an AI score of 50/100, indicating moderate score. Key strength: Leveraged inverse exposure provides potential for high returns in a declining market.. Primary risk to monitor: Potential: Unexpected positive economic data boosting consumer spending.. This is not financial advice.
How frequently does SCC data refresh on this page?
SCC prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven SCC's recent stock price performance?
Recent price movement in ProShares - UltraShort Consumer Discretionary (SCC) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Leveraged inverse exposure provides potential for high returns in a declining market.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Leveraged and inverse ETFs are complex financial instruments and are not suitable for all investors.
- The performance of SCC may differ significantly from the stated multiple of the index's return over extended periods due to compounding effects.
- Investors should carefully consider their risk tolerance and investment horizon before investing in SCC.