ProShares - UltraPro Short MidCap400 (SMDD) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, 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 MidCap400 (SMDD) trades at $7.75. ProShares UltraPro Short MidCap400 is a leveraged exchange-traded fund (ETF) designed to deliver three times the inverse of the daily performance of the S&P MidCap… Market cap: $1.79M, Sector: Financial services.
Price as of Aug 21, 2026 · Last analyzed: Mar 17, 2026Analyst Coverage for SMDD: SMDD does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates SMDD against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
SMDD: the 3 scored disciplines are evenly split. Dominant signal: Ken Griffin bullish.
How is this calculated? →ProShares - UltraPro Short MidCap400 (SMDD) Financial Services Profile
ProShares UltraPro Short MidCap400 offers a leveraged inverse exposure to the S&P MidCap 400, targeting sophisticated investors seeking short-term hedging or speculative opportunities in the mid-cap equity market with a high-risk, high-reward profile due to its -3x leverage factor.
What Is the Investment Thesis for SMDD?
ProShares UltraPro Short MidCap400 (SMDD) presents a tactical opportunity for investors with a short-term bearish outlook on the S&P MidCap 400. The fund's -3x leverage factor can generate substantial returns if the index declines as anticipated. However, the inherent risks associated with leveraged ETFs, including the potential for rapid value erosion and the effects of compounding over longer periods, necessitate a disciplined and actively managed approach. Key to SMDD's performance is the accuracy of predicting short-term market movements. Investors must closely monitor economic indicators, market sentiment, and technical signals to time their entry and exit points effectively. The fund's high beta of -3.23 indicates significant volatility, requiring a strong risk management framework. While SMDD can provide a valuable tool for hedging or speculation, it is not suitable for buy-and-hold strategies due to its design for daily performance tracking.
Based on FMP financials and quantitative analysis
SMDD Key Highlights
SMDD seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the S&P MidCap 400.
- The fund utilizes derivatives, including swap agreements, futures contracts, and options, to achieve its leveraged inverse exposure.
- SMDD is designed for short-term trading and is not intended for long-term investment strategies.
- Due to the effects of compounding, the fund's performance over periods longer than one day can differ significantly from the stated -3x daily objective.
- SMDD has a high beta of -3.23, indicating significant volatility and sensitivity to market movements.
Who Are SMDD's Competitors?
SMDD is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BULG Leverage Shares 2x Long BULL Daily ETF | $55.57 | +5.23% | 46 | |
| EWV ProShares - UltraShort MSCI Japan | $17.12 | +0.54% | $5.31M | 54 |
| SIJ ProShares - UltraShort Industrials | $16.48 | +2.30% | $5.91M | 54 |
| ZVOL Volatility Shares Trust - Volatility Premium Plus ETF | $7.46 | -1.19% | $9.40M | 48 |
| SKF ProShares - UltraShort Financials | $23.28 | +2.06% | $10.3M | 63 |
| PST ProShares - UltraShort 7-10 Year Treasury | $23.49 | +0.76% | $11.3M | 67 |
| PRTBX Short-Term Treasury Portfolio Class I | $66.52 | -0.02% | $13.0M | 61 |
| DUG ProShares - UltraShort Energy | $14.68 | -0.68% | $17.1M | 51 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SMDD's Key Strengths?
Leveraged inverse exposure provides potential for high returns in declining markets.
- Daily rebalancing ensures consistent -3x leverage ratio.
- Liquid and transparent investment vehicle.
- Managed by an experienced ETF provider.
What Are SMDD's Weaknesses?
High volatility and risk of rapid value erosion.
- Not suitable for long-term investment.
- Performance can deviate significantly from the stated -3x daily objective over longer periods.
- Susceptible to compounding effects and tracking error.
What Could Drive SMDD Stock Higher?
Increased market volatility due to anticipated interest rate hikes by the Federal Reserve.
- Growing demand for hedging instruments amid economic uncertainty.
- Rising adoption of leveraged ETFs among sophisticated investors.
What Are the Key Risks for SMDD?
Unexpected market rallies can lead to significant losses.
- High volatility and risk of rapid value erosion.
- Performance can deviate significantly from the stated -3x daily objective over longer periods.
- Changes in market regulations or index composition.
What Are the Growth Opportunities for SMDD?
- Increased Market Volatility: Heightened market volatility, driven by economic uncertainty and geopolitical events, can create opportunities for SMDD. As volatility rises, investors may seek to hedge their portfolios or speculate on short-term market declines, increasing demand for inverse ETFs like SMDD. The market size for hedging instruments is directly correlated with overall market volatility, with potential for significant growth during periods of economic stress. Timeline: Ongoing.
- Sophisticated Investor Adoption: Growing awareness and understanding of leveraged and inverse ETFs among sophisticated investors can drive increased adoption of SMDD. As more investors become familiar with the potential benefits and risks of these products, they may incorporate them into their trading strategies. The market for sophisticated investment tools is expanding, with a focus on customized solutions and risk management. Timeline: Ongoing.
- Expansion of Distribution Channels: Expanding the distribution channels for SMDD, including partnerships with online brokers and financial advisors, can increase its accessibility to a wider range of investors. Increased distribution can lead to higher trading volumes and asset growth for the fund. The market for online brokerage services is growing rapidly, providing opportunities for ETF providers to reach new investors. Timeline: Ongoing.
- Development of New Trading Strategies: The development of new and innovative trading strategies that incorporate SMDD can attract more investors to the fund. As investors discover new ways to use leveraged and inverse ETFs to generate returns or manage risk, demand for SMDD may increase. The market for algorithmic trading and quantitative strategies is constantly evolving, creating opportunities for innovative ETF applications. Timeline: Ongoing.
- Rising Interest Rate Environment: In a rising interest rate environment, companies with high debt levels may face increased financial pressure, potentially leading to a decline in their stock prices. SMDD can be used to profit from this scenario by providing inverse exposure to the S&P MidCap 400, which includes companies sensitive to interest rate changes. The market for interest rate hedging is significant, with potential for growth as rates continue to rise. Timeline: Ongoing.
What Threats Does SMDD Face?
- Competition from other leveraged and inverse ETFs.
- Changes in market regulations or index composition.
- Increased scrutiny from regulators regarding the use of derivatives.
- Potential for counterparty risk in swap agreements.
What Are SMDD's Competitive Advantages?
- Established brand recognition as a leading provider of leveraged and inverse ETFs.
- Expertise in managing complex investment products and derivatives.
- First-mover advantage in offering leveraged inverse exposure to the S&P MidCap 400.
- Scale and liquidity benefits from managing a large ETF portfolio.
What Does SMDD Do?
ProShares UltraPro Short MidCap400 is a financial instrument designed for sophisticated investors seeking to profit from, or hedge against, short-term declines in the S&P MidCap 400 Index. Launched by ProShares, a well-known provider of leveraged and inverse ETFs, SMDD offers a magnified inverse return, aiming for -3x the daily performance of the underlying index. The fund achieves its objective through the use of derivatives, primarily swap agreements, futures contracts, and options, allowing it to amplify the inverse performance of the S&P MidCap 400. The S&P MidCap 400 Index represents the performance of 400 mid-sized U.S. companies, providing a broad benchmark for this segment of the equity market. SMDD is not intended for long-term investment and is designed to be used as a tactical tool for short-term trading strategies. Due to the effects of compounding, the fund's performance over periods longer than one day can differ significantly from the stated -3x daily objective. ProShares, the fund's manager, specializes in creating innovative ETFs that provide investors with access to a range of investment strategies, including leveraged, inverse, and alternative asset classes. The company's expertise in managing complex investment products has made it a leading player in the ETF industry. SMDD is one of many specialized ETFs offered by ProShares, catering to investors with specific risk tolerances and investment objectives.
What Products and Services Does SMDD Offer?
- Provides leveraged inverse exposure to the S&P MidCap 400 Index.
- Seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the index.
- Utilizes derivatives, including swap agreements, futures contracts, and options, to achieve its investment objective.
- Offers investors a tool to potentially profit from short-term declines in mid-cap stocks.
- Serves as a hedging instrument for investors seeking to mitigate portfolio risk.
- Designed for sophisticated investors with a high-risk tolerance.
How Does SMDD Make Money?
- Generates revenue through management fees charged on the fund's assets under management (AUM).
- Employs a leveraged investment strategy to amplify the inverse performance of the S&P MidCap 400.
- Utilizes derivatives to achieve its investment objective, incurring transaction costs and counterparty risk.
- Offers daily rebalancing to maintain its -3x leverage ratio, resulting in potential tracking error over longer periods.
What Industry Does SMDD Operate In?
The leveraged ETF market has grown significantly, offering investors tools for tactical allocation and hedging. ProShares UltraPro Short MidCap400 (SMDD) operates within this niche, providing inverse exposure to the S&P MidCap 400. The ETF market is highly competitive, with numerous providers offering similar leveraged and inverse products. The performance of SMDD is directly tied to the S&P MidCap 400's movements, making it sensitive to economic cycles and market sentiment. As of 2026, investors are using these instruments to manage portfolio risk amid economic uncertainty.
Who Are SMDD's Key Customers?
- Sophisticated investors seeking short-term trading opportunities.
- Hedge funds and institutional investors employing tactical asset allocation strategies.
- Financial advisors using leveraged ETFs to manage client portfolios.
- Investors with a bearish outlook on the S&P MidCap 400 Index.
SMDD Valuation & Market Position
With a $1.79M market cap, ProShares - UltraPro Short MidCap400 sits in the micro-cap segment of the market.
Key Financial Metrics
Return on equity for ProShares - UltraPro Short MidCap400 stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. SMDD trades at a trailing price-to-earnings ratio of 0.00, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.
SMDD Financials
Bull Case vs Bear Case
Bull Case
- SMDD benefits when mid-cap stocks face broad market downturns. If economic indicators point towards a recession, SMDD could see increased demand as investors seek to hedge their portfolios.
- Recent market volatility has created uncertainty around mid-cap growth, potentially driving investors to short these stocks via SMDD. This is a classic 'flight to safety' play.
- Negative news or earnings misses from major mid-cap companies could trigger a sell-off, boosting SMDD's value. Sentiment can shift rapidly in the current environment.
- Increased chatter in trading communities about potential mid-cap corrections suggests growing bearish sentiment that could fuel SMDD's upward movement.
Bear Case
- Strong economic data could diminish the appeal of shorting mid-caps. If the market perceives continued growth, SMDD may experience downward pressure.
- Positive earnings reports from mid-cap companies could boost investor confidence, reducing the incentive to short these stocks via SMDD. This is a risk-on environment.
- Improved market sentiment, driven by factors like easing inflation, could lead to a broad rally in mid-caps, negatively impacting SMDD. The tide can turn quickly.
- Insider buying activity in mid-cap companies might signal confidence in their future prospects, potentially undermining the case for shorting them through SMDD. Follow the smart money.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
SMDD Latest News
No recent news available for SMDD.
SMDD Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SMDD.
Price Targets
Wall Street price target analysis for SMDD.
SMDD MoonshotScore
What does this score mean?
The MoonshotScore rates SMDD 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Common Questions About SMDD (Financial Services)
What does ProShares - UltraPro Short MidCap400 do?
ProShares UltraPro Short MidCap400 (SMDD) is a leveraged exchange-traded fund (ETF) that seeks to deliver three times the inverse (-3x) of the daily performance of the S&P MidCap 400 Index. This means that for every 1% decline in the S&P MidCap 400, SMDD aims to generate a 3% return, before fees and expenses.
What are the main risks for SMDD?
The main risks associated with ProShares UltraPro Short MidCap400 (SMDD) include high volatility, potential for rapid value erosion, and the effects of compounding over longer periods. As a leveraged ETF, SMDD is subject to significant price swings and can experience substantial losses in a short amount of time.
What are the key factors to evaluate for SMDD?
Evaluate SMDD on fundamentals, analyst consensus, and risk factors. ProShares UltraPro Short MidCap400 (SMDD) presents a tactical opportunity for investors with a short-term bearish outlook on the S&P MidCap 400. Not financial advice.
How frequently does SMDD data refresh on this page?
SMDD's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven SMDD's recent stock price performance?
ProShares - UltraPro Short MidCap400 (SMDD) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Leveraged inverse exposure provides potential for high returns in declining markets. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SMDD overvalued or undervalued right now?
ProShares - UltraPro Short MidCap400 (SMDD) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research SMDD before investing?
Before investing in ProShares - UltraPro Short MidCap400 (SMDD), 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) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding SMDD to a portfolio?
Key strength of ProShares - UltraPro Short MidCap400 (SMDD): Leveraged inverse exposure provides potential for high returns in declining markets. Weigh rewards against risks and diversify. Not financial advice.
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 SMDD.
- The information provided is based on available data and is subject to change.