ProShares Short Basic Materials (SBM) 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 Short Basic Materials (SBM) trades at $46.38. ProShares Short Basic Materials (SBM) is a non-diversified fund seeking daily returns consistent with its investment objective, which is to provide inverse exposure to the U. Market cap: $1.85M, Sector: Financial services.
Price as of Aug 20, 2026 · Last analyzed: Mar 18, 2026Analyst Coverage for SBM: SBM 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 SBM against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
SBM: 1/3 scored disciplines lean bearish. Dominant signal: Ray Dalio bullish.
How is this calculated? →ProShares Short Basic Materials (SBM) Financial Services Profile
ProShares Short Basic Materials (SBM) offers investors an inverse investment vehicle focused on the U.S. basic materials sector, utilizing financial instruments to achieve daily returns aligned with its objective. Managed by ProShare Advisors, the fund provides a non-diversified approach for those seeking to capitalize on potential declines in the basic materials market.
What Is the Investment Thesis for SBM?
ProShares Short Basic Materials (SBM) presents a tactical opportunity for investors anticipating a decline in the U.S. basic materials sector. The fund's inverse relationship to the sector's performance allows investors to potentially profit from downward market movements. SBM's non-diversified nature amplifies both potential gains and losses, making it suitable for short-term strategies. Key to SBM's performance is the accuracy of predicting downturns in the basic materials sector, influenced by factors like commodity prices, economic growth, and regulatory changes. The fund's daily reset feature requires active monitoring and management, as longer holding periods can lead to deviations from the intended inverse exposure. With a beta of -1.07, SBM demonstrates a strong inverse correlation to the basic materials market, but investors should carefully consider the fund's non-diversified nature and potential for volatility.
Based on FMP financials and quantitative analysis
SBM Key Highlights
SBM provides inverse exposure to the U.S. basic materials sector, allowing investors to profit from potential declines.
- The fund is non-diversified, concentrating its investments for amplified returns and higher volatility.
- SBM's performance is tied to the daily performance of its benchmark index, requiring active management.
- The fund offers intraday liquidity as an ETF, enabling investors to buy and sell shares throughout the trading day.
- With a beta of -1.07, SBM exhibits a strong inverse correlation to the basic materials market.
Who Are SBM's Competitors?
SBM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ALISR Calisa Acquisition Corp Right | $0.64 | +0.00% | 81 | |
| IDKFF ThreeD Capital Inc. | $0.07 | +13.85% | $6.98M | 70 |
| ALTEX Firsthand Alternative Energy Fund | $12.93 | -1.90% | $8.98M | 82 |
| BCG Binah Capital Group, Inc. | $1.40 | +0.72% | $23.5M | 76 |
| EEA The European Equity Fund, Inc. | $11.15 | -0.59% | $74.7M | 67 |
| HNNA Hennessy Advisors, Inc. | $9.89 | -1.30% | $78.2M | 82 |
| ETHT ProShares - Ultra Ether ETF | $12.57 | +19.94% | $92.2M | 68 |
| TPZ Tortoise Electrification Infrastructure ETF | $21.62 | -0.18% | $127M | 70 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SBM's Key Strengths?
Provides inverse exposure to the U.S. basic materials sector.
- Offers a tool for hedging or speculative purposes.
- Provides intraday liquidity as an ETF.
- Managed by ProShare Advisors, specializing in leveraged and inverse ETFs.
What Are SBM's Weaknesses?
Non-diversified nature can lead to higher volatility.
- Performance can deviate from the intended inverse exposure over longer holding periods.
- Requires active monitoring and management.
- Susceptible to tracking error.
What Could Drive SBM Stock Higher?
Potential downturn in the basic materials sector due to economic slowdown.
- Geopolitical instability impacting commodity prices and supply chains.
- Changes in environmental regulations affecting the basic materials sector.
What Are the Key Risks for SBM?
Unexpected positive performance in the basic materials sector.
- Competition from other inverse ETFs and financial instruments.
- Tracking error due to the complexities of inverse ETFs.
- Non-diversified nature can lead to higher volatility.
What Are the Growth Opportunities for SBM?
- Increased Market Volatility: Heightened volatility in the basic materials sector, driven by factors such as fluctuating commodity prices and geopolitical events, could increase demand for SBM as investors seek to hedge their portfolios or capitalize on short-term market declines. The market size for hedging instruments is substantial, with trillions of dollars in assets seeking protection against market downturns. This is an ongoing opportunity.
- Rising Interest Rates: Rising interest rates can negatively impact the basic materials sector, as higher borrowing costs can reduce demand for raw materials and construction projects. This scenario could drive increased interest in SBM as investors anticipate a decline in the sector. The timeline for this opportunity depends on the pace of interest rate hikes, but it represents a significant potential catalyst.
- Economic Slowdown: An economic slowdown or recession could lead to decreased demand for basic materials, negatively impacting the sector's performance. Investors anticipating such a scenario may turn to SBM to profit from the expected decline. The timing of this opportunity is tied to macroeconomic conditions and economic forecasts.
- Geopolitical Instability: Geopolitical instability and trade tensions can disrupt supply chains and impact commodity prices, creating uncertainty in the basic materials sector. This uncertainty could drive demand for SBM as investors seek to hedge against potential market declines. This is an ongoing opportunity.
- Regulatory Changes: Changes in environmental regulations or trade policies can significantly impact the basic materials sector, creating opportunities for investors to profit from anticipated market movements. SBM provides a tool to capitalize on the potential negative impact of such regulatory changes. The timeline for this opportunity depends on the specific regulatory changes being considered.
What Are SBM's Competitive Advantages?
- Specialized Expertise: ProShare Advisors' expertise in managing leveraged and inverse ETFs.
- First-Mover Advantage: Being one of the first ETFs to offer inverse exposure to the basic materials sector.
- Brand Recognition: ProShares' established brand name in the ETF market.
- ETF Structure: The ETF structure provides intraday liquidity and transparency.
What Does SBM Do?
ProShares Short Basic Materials (SBM) is designed for investors seeking to profit from a decline in the U.S. basic materials sector. The fund achieves its investment objective by investing in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the inverse of the performance of the underlying index. The fund is non-diversified, meaning it concentrates its investments in a smaller number of holdings compared to a diversified fund. This concentration can lead to higher volatility. SBM provides a way for investors to express a bearish view on the basic materials industry without directly shorting individual stocks. The fund's performance is linked to the daily performance of its benchmark index, offering a tool for short-term tactical strategies. As an exchange-traded fund (ETF), SBM offers intraday liquidity, allowing investors to buy and sell shares throughout the trading day. The fund is managed by ProShare Advisors, a firm specializing in leveraged and inverse ETFs. The basic materials sector includes companies involved in the discovery, development, and processing of raw materials, such as metals, chemicals, and forest products. SBM provides a mechanism for investors to potentially profit from anticipated downturns in this sector, making it a tool for hedging or speculative purposes. However, due to the nature of inverse ETFs, it is crucial for investors to understand the risks and complexities involved, particularly the potential for performance divergence over longer holding periods.
What Products and Services Does SBM Offer?
- Provides inverse exposure to the U.S. basic materials sector.
- Invests in financial instruments to achieve daily returns consistent with its investment objective.
- Offers a non-diversified approach, concentrating investments in a smaller number of holdings.
- Allows investors to express a bearish view on the basic materials industry.
- Provides intraday liquidity as an exchange-traded fund (ETF).
- Managed by ProShare Advisors, specializing in leveraged and inverse ETFs.
How Does SBM Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- Offers a specialized investment product for investors seeking inverse exposure.
- Utilizes financial instruments to achieve its investment objective.
- Provides a tool for hedging or speculative purposes.
What Industry Does SBM Operate In?
ProShares Short Basic Materials (SBM) operates within the asset management industry, specifically focusing on providing inverse exposure to a particular sector. The ETF market has experienced substantial growth, driven by increasing investor demand for specialized investment products. SBM caters to investors with a bearish outlook on the basic materials sector, offering a tool to hedge or speculate on potential downturns. Competitors include other inverse ETFs and financial instruments that provide exposure to the basic materials sector, such as AMER, BDCY, EVXX, FDCE and FLZA. The fund's success depends on accurately predicting market movements and managing the complexities of inverse ETFs.
Who Are SBM's Key Customers?
- Institutional investors seeking to hedge their exposure to the basic materials sector.
- Individual investors with a bearish outlook on the basic materials industry.
- Traders looking to capitalize on short-term market movements.
- Portfolio managers seeking to diversify their investment strategies.
ProShares Short Basic Materials (SBM) Valuation Context
Valued at $1.85M, SBM is classified as a micro-cap stock.
Key Financial Metrics
Return on equity for ProShares Short Basic Materials 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. SBM 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.
SBM Financials
Bull Case vs Bear Case
Bull Case
- Provides inverse exposure to the U.S. basic materials sector.
- Offers a tool for hedging or speculative purposes.
- Provides intraday liquidity as an ETF.
- Managed by ProShare Advisors, specializing in leveraged and inverse ETFs.
Bear Case
- Non-diversified nature can lead to higher volatility.
- Performance can deviate from the intended inverse exposure over longer holding periods.
- Requires active monitoring and management.
- Susceptible to tracking error.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · August 2026
SBM Latest News
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SBM Offshore completes US$465 million financing of FSO Chalchi
globenewswire.com · Jun 29, 2026
SBM Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SBM.
Price Targets
Wall Street price target analysis for SBM.
SBM MoonshotScore
What does this score mean?
The MoonshotScore rates SBM 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
SBM Financial Services Stock FAQ
What does ProShares Short Basic Materials do?
ProShares Short Basic Materials (SBM) is an exchange-traded fund (ETF) designed to deliver the inverse of the daily performance of the U.S. basic materials sector. It achieves this by investing in financial instruments that aim to produce returns that are the opposite of the sector's daily performance.
What do analysts say about SBM stock?
As an inverse ETF, SBM's performance is directly tied to the performance of the U.S. basic materials sector. Analysts typically focus on the outlook for the basic materials sector when evaluating SBM. Key valuation metrics are not directly applicable to inverse ETFs, as their value is derived from the inverse performance of the underlying index.
What are the main risks for SBM?
The primary risk for SBM is the potential for unexpected positive performance in the basic materials sector, which would result in losses for the fund. Other risks include the fund's non-diversified nature, which can amplify volatility, and the potential for tracking error, where the fund's performance deviates from the intended inverse exposure.
What are the key factors to evaluate for SBM?
Evaluate SBM on fundamentals, analyst consensus, and risk factors. ProShares Short Basic Materials (SBM) presents a tactical opportunity for investors anticipating a decline in the U.S. Not financial advice.
How frequently does SBM data refresh on this page?
SBM's price was last updated on Aug 20, 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 SBM's recent stock price performance?
ProShares Short Basic Materials (SBM) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Provides inverse exposure to the U.S. basic materials sector. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SBM overvalued or undervalued right now?
ProShares Short Basic Materials (SBM) 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 SBM before investing?
Before investing in ProShares Short Basic Materials (SBM), 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).
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.
- The information provided is based on publicly available data and should not be considered investment advice.
- Investors should conduct their own research and consult with a financial advisor before making any investment decisions.