(DXD) ProShares UltraShort Dow30 - Overview

ProShares UltraShort Dow30 (NYSE ARCA: DXD) is an inverse-leveraged ETF that seeks to deliver –2× the daily performance of the Dow Jones Industrial Average, a price-weighted index of 30 large-cap U.S. blue-chip stocks (excluding utilities and transportation). The fund achieves this exposure by allocating at least 80 % of its assets to short positions or derivative contracts that mirror the index’s economic characteristics, making it a non-diversified vehicle with heightened concentration risk.

Key operational metrics (as of the latest filing) include an expense ratio of 0.95 % and an assets-under-management (AUM) level of roughly $300 million, with an average daily trading volume of about 1.2 million shares, indicating relatively high liquidity for an inverse product. The fund’s 30-day rolling beta to the Dow is approximately –2.0, confirming its targeted leverage, while its 30-day historical volatility (annualized) sits near 45 %, substantially higher than the underlying index’s ~20 %.

Macro-level drivers that can amplify DXD’s performance are rising interest rates and tightening monetary policy, which tend to pressure equity valuations-especially in the industrial and consumer-discretionary sectors that dominate the Dow. Conversely, a broad market rally or strong corporate earnings season could quickly erode the fund’s value, given its daily reset and compounding effects.

Investors should treat DXD as a short-term tactical tool rather than a long-haul holding; its performance can diverge sharply from –2× the index over periods longer than a single trading day due to path dependency and volatility drag.

For a deeper quantitative breakdown, explore the ValueRay platform’s analytics on DXD.