About Spxu and Spxu Trading
ProShares UltraShort S&P500 (Spxu) is a leveraged inverse Exchange Traded Fund targetting a daily return that is three times the inverse of the daily performance of the USA500 Index. ETFs (Exchange Traded Funds) allow traders to track the performance of specific indices, bonds, or a group of assets. In this case, SPXU, issued on June 23, 2009, tracks the performance of the S&P 500 index.
Like any inverse ETF, the fund is designed to move in the opposite direction of an index (S&P 500), using leveraged investments such as short sales and futures contracts.
What is a leveraged inverse ETF?
An inverse ETF is an exchange-traded fund (ETF) constructed by using various derivatives to take advantage of a fall in the value of an underlying benchmark. Investing in inverse ETFs works the same way as holding various short positions and involves borrowing securities and selling them, hoping for a later repurchase at a lower price.