ProShares UltraPro Short Communication Services Select Sector (SCOM)
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 UltraPro Short Communication Services Select Sector (SCOM). ProShares UltraPro Short Communication Services Select Sector seeks to deliver three times the inverse of the daily performance of the S&P Communication Services Select Sector Index. Market cap: 0, Sector: Unknown.
Last analyzed: Mar 16, 2026ProShares UltraPro Short Communication Services Select Sector (SCOM) Business Overview & Investment Profile
ProShares UltraPro Short Communication Services Select Sector (SCOM) is a non-diversified fund aiming for three times the inverse daily return of the S&P Communication Services Select Sector Index, employing derivatives and money market instruments. It focuses its investments within the communication services sector of the S&P 500.
Investment Thesis
SCOM offers a tactical tool for investors seeking to profit from short-term declines in the communication services sector. The fund's leveraged inverse exposure can amplify returns when the sector underperforms. However, the use of leverage also magnifies potential losses, making it suitable only for sophisticated investors with a high-risk tolerance and a short-term investment horizon. The fund's daily reset feature can lead to significant tracking error over longer periods, particularly in volatile markets. Investors should carefully monitor the index's performance and the fund's daily returns to manage risk effectively. The beta of 1.00 indicates that the fund's volatility is similar to that of the market.
Based on FMP financials and quantitative analysis
Key Highlights
- Seeks to provide three times the inverse (-3x) of the daily performance of the S&P Communication Services Select Sector Index.
- Utilizes derivatives and money market instruments to achieve its investment objective.
- Concentrates its investments in the communication services sector, mirroring the index's composition.
- Classified as a non-diversified fund, increasing its sensitivity to sector-specific movements.
- Beta of 1.00 indicates market-level volatility.
Competitors & Peers
Strengths
- Leveraged inverse exposure provides potential for high returns in declining markets.
- Established brand recognition as part of the ProShares ETF family.
- Offers a tactical tool for short-term trading strategies.
- Concentrated exposure to the communication services sector.
Weaknesses
- High-risk due to leverage and inverse exposure.
- Daily reset feature can lead to tracking error over longer periods.
- Suitable only for sophisticated investors.
- Concentration in a single sector increases volatility.
Catalysts
- Earnings releases and financial performance of major companies within the S&P Communication Services Select Sector Index can significantly impact the fund's performance.
- Regulatory changes affecting the communication services sector or the use of leveraged ETFs could influence investor sentiment and trading activity.
- Technological advancements and disruptions within the communication services sector can create volatility and trading opportunities for SCOM.
Risks
- Significant losses due to the leveraged inverse exposure, especially in a rising market.
- Tracking error over longer periods due to the daily reset feature.
- Changes in interest rates impacting the cost of borrowing for derivative positions.
- High volatility associated with the communication services sector.
- Regulatory scrutiny of leveraged and inverse ETFs.
Growth Opportunities
- Increased Volatility in Communication Services Sector: Market volatility within the communication services sector could lead to increased trading activity and demand for SCOM as investors seek to capitalize on short-term declines. Geopolitical events, regulatory changes, or unexpected shifts in consumer behavior could trigger such volatility. The timeline for this growth opportunity is event-driven and difficult to predict, but increased market uncertainty could drive demand for inverse ETFs like SCOM.
- Growing Sophistication of Retail Investors: As retail investors become more sophisticated and seek to implement complex trading strategies, demand for leveraged and inverse ETFs may increase. SCOM could benefit from this trend as investors use it to hedge their portfolios or speculate on short-term market movements. This growth opportunity is dependent on the continued education and empowerment of retail investors, with a potential timeline of 2-5 years.
- Expansion of ETF Trading Platforms: The proliferation of online brokerage platforms and the increasing accessibility of ETF trading could drive demand for SCOM. As more investors gain access to these platforms, they may be more likely to experiment with leveraged and inverse ETFs as part of their investment strategies. This growth opportunity is tied to the continued expansion and innovation of the online brokerage industry, with a potential timeline of 1-3 years.
- Strategic Use by Institutional Investors: Institutional investors may use SCOM as a tactical tool to hedge their exposure to the communication services sector or to generate alpha through short-term trading strategies. Increased adoption by institutional investors could drive significant trading volume and assets under management for SCOM. This growth opportunity is dependent on the fund's ability to demonstrate its effectiveness as a hedging and trading tool, with a potential timeline of 3-5 years.
- Product Innovation in Leveraged and Inverse ETFs: Continued innovation in the ETF industry could lead to the development of new and more sophisticated leveraged and inverse products. SCOM could benefit from this trend by expanding its product offerings or by attracting investors who are seeking more specialized investment strategies. This growth opportunity is dependent on the fund's ability to adapt to changing market conditions and investor preferences, with an ongoing timeline.
Opportunities
- Increased volatility in the communication services sector.
- Growing sophistication of retail investors.
- Expansion of ETF trading platforms.
- Strategic use by institutional investors.
Threats
- Potential for significant losses due to leverage and inverse exposure.
- Changes in regulatory environment impacting leveraged ETFs.
- Competition from other leveraged and inverse ETFs.
- Unexpected shifts in the communication services sector.
Competitive Advantages
- Established brand recognition as part of the ProShares ETF family.
- Leveraged and inverse exposure provides a unique offering in the ETF market.
- Proprietary trading strategies for managing derivative positions.
- Deep understanding of the communication services sector and its dynamics.
About SCOM
ProShares UltraPro Short Communication Services Select Sector (SCOM) is designed to provide investors with a leveraged inverse exposure to the communication services sector. The fund seeks daily investment results, before fees and expenses, that correspond to three times the inverse (-3x) of the daily performance of the S&P Communication Services Select Sector Index. This index represents the communication services industry group within the broader S&P 500 Index. The fund achieves its investment objective primarily through the use of financial instruments such as derivatives and money market instruments. Derivatives, including swaps, futures contracts, and options, allow the fund to gain leveraged exposure to the index without directly holding the underlying stocks. Money market instruments provide liquidity and serve as collateral for the derivative positions. SCOM is classified as a non-diversified fund, meaning it can concentrate its investments in a particular industry or group of industries to approximately the same extent as the index it tracks. This concentration increases the fund's sensitivity to fluctuations in the communication services sector.
What They Do
- Seeks daily investment results that correspond to three times the inverse of the daily performance of the S&P Communication Services Select Sector Index.
- Invests primarily in derivatives, such as swaps, futures contracts, and options.
- Utilizes money market instruments for liquidity and collateral purposes.
- Concentrates its investments in the communication services sector.
- Offers a leveraged inverse exposure to the communication services sector.
- Resets daily, which can lead to tracking error over longer periods.
Business Model
- Generates revenue through management fees charged on assets under management (AUM).
- Profits from trading activities related to the fund's derivative positions.
- Aims to provide leveraged inverse exposure to the S&P Communication Services Select Sector Index.
- Attracts investors seeking short-term trading opportunities in the communication services sector.
Industry Context
SCOM operates within the exchange-traded fund (ETF) industry, specifically focusing on leveraged and inverse products. The communication services sector, which SCOM targets, includes companies involved in telecommunications, media, and entertainment. This sector is influenced by factors such as technological advancements, regulatory changes, and consumer preferences. The ETF market has experienced significant growth in recent years, driven by increasing investor demand for low-cost, passively managed investment vehicles. However, leveraged and inverse ETFs like SCOM carry additional risks due to their use of derivatives and daily reset mechanisms.
Key Customers
- Sophisticated investors with a high-risk tolerance.
- Traders seeking to profit from short-term declines in the communication services sector.
- Institutional investors using SCOM as a hedging tool.
- Retail investors implementing complex trading strategies.
Financials
Chart & Info
ProShares UltraPro Short Communication Services Select Sector (SCOM) stock price: Price data unavailable
Latest News
No recent news available for SCOM.
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SCOM.
Price Targets
Wall Street price target analysis for SCOM.
MoonshotScore
What does this score mean?
The MoonshotScore rates SCOM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry UnknownSCOM Unknown Stock FAQ
What does ProShares UltraPro Short Communication Services Select Sector do?
ProShares UltraPro Short Communication Services Select Sector (SCOM) is an exchange-traded fund (ETF) designed to deliver three times the inverse of the daily performance of the S&P Communication Services Select Sector Index. This means that the fund aims to generate gains when the communication services sector, as represented by the index, declines in value. SCOM achieves this objective through the use of derivatives, such as swaps, futures contracts, and options, which allow it to amplify the inverse returns of the index. The fund is non-diversified and concentrates its investments in the communication services sector.
What do analysts say about SCOM stock?
AI analysis is pending for SCOM. As a leveraged inverse ETF, SCOM's performance is closely tied to the daily movements of the S&P Communication Services Select Sector Index. Investors should monitor the index's performance and the fund's daily returns to assess its suitability for their investment objectives. Key valuation metrics for SCOM include its expense ratio and tracking error. Growth considerations include the potential for increased volatility in the communication services sector and the fund's ability to attract trading volume.
What are the main risks for SCOM?
The main risks for SCOM include the potential for significant losses due to its leveraged inverse exposure. If the communication services sector rises in value, the fund is likely to decline, and the leverage can magnify these losses. The daily reset feature can also lead to tracking error over longer periods, particularly in volatile markets. Additionally, SCOM is concentrated in a single sector, which increases its sensitivity to sector-specific risks. Investors should carefully consider these risks before investing in SCOM.
What are the key factors to evaluate for SCOM?
Evaluating SCOM involves reviewing fundamentals, analyst consensus, and risk factors. Key strength: Leveraged inverse exposure provides potential for high returns in declining markets. Primary risk to monitor: Significant losses due to the leveraged inverse exposure, especially in a rising market. This is not financial advice.
How frequently does SCOM data refresh on this page?
SCOM 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 SCOM's recent stock price performance?
Recent price movement in ProShares UltraPro Short Communication Services Select Sector (SCOM) 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 declining markets. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider SCOM overvalued or undervalued right now?
Determining whether ProShares UltraPro Short Communication Services Select Sector (SCOM) is overvalued or undervalued requires examining multiple metrics. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying SCOM?
Before investing in ProShares UltraPro Short Communication Services Select Sector (SCOM), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
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.
- AI analysis pending for SCOM, limiting the depth of available insights.
- The information provided is based on publicly available data and may be subject to change.