SDD vs. SEF
SDD (ProShares UltraShort SmallCap600) and SEF (ProShares Short Financials) are both Inverse Equities funds from ProShares - SDD tracks the S&P Small Cap 600 (-200%) while SEF tracks the Dow Jones U.S. Financials Index (-100%). Both are passively managed. Over the past 10 years, SDD returned -26.75%/yr vs -11.70%/yr for SEF. A 0.76 correlation means they provide meaningful diversification when combined. Both charge a 0.95% expense ratio.
Performance
SDD vs. SEF - Performance Comparison
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Returns By Period
In the year-to-date period, SDD achieves a -23.94% return, which is significantly lower than SEF's 6.07% return. Over the past 10 years, SDD has underperformed SEF with an annualized return of -26.75%, while SEF has yielded a comparatively higher -11.70% annualized return.
SDD
- 1D
- 3.63%
- 1M
- 2.05%
- YTD
- -23.94%
- 6M
- -22.77%
- 1Y
- -41.53%
- 3Y*
- -23.30%
- 5Y*
- -14.95%
- 10Y*
- -26.75%
SEF
- 1D
- -0.08%
- 1M
- -0.46%
- YTD
- 6.07%
- 6M
- 3.83%
- 1Y
- 0.06%
- 3Y*
- -10.89%
- 5Y*
- -5.70%
- 10Y*
- -11.70%
SDD vs. SEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SDD ProShares UltraShort SmallCap600 | -23.94% | -14.69% | -13.60% | -25.99% | 20.50% | -46.57% | -55.11% | -36.30% | 14.10% | -25.45% |
SEF ProShares Short Financials | 6.07% | -9.82% | -17.81% | -8.81% | 11.85% | -27.02% | -16.93% | -23.51% | 10.34% | -17.12% |
Correlation
The correlation between SDD and SEF is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.65 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.72 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Jun 13, 2008 | 0.76 |
The correlation between SDD and SEF shifts across timeframes, from 0.65 (1 year) to 0.78 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
SDD vs. SEF — Risk / Return Rank
SDD
SEF
SDD vs. SEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort SmallCap600 (SDD) and ProShares Short Financials (SEF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| SDD | SEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.16 | ||
| Sortino ratioReturn per unit of downside risk | -1.81 | ||
| Omega ratioGain probability vs. loss probability | 0.81 | 1.01 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | -0.95 | 0.01 | -0.96 |
| Martin ratioReturn relative to average drawdown | -1.56 | 0.01 | -1.57 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SDD | SEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -1.15 | 0.00 | -1.16 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.35 | -0.32 | -0.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.59 | -0.57 | -0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.59 | -0.49 | -0.09 |
Drawdowns
SDD vs. SEF - Drawdown Comparison
The maximum SDD drawdown since its inception was -99.93%, roughly equal to the maximum SEF drawdown of -96.51%. Use the drawdown chart below to compare losses from any high point for SDD and SEF.
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Drawdown Indicators
| SDD | SEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -99.93% | -96.51% | -3.42% |
Max Drawdown (1Y)Largest decline over 1 year | -43.74% | -9.72% | -34.02% |
Max Drawdown (3Y)Largest decline over 3 years | -65.26% | -39.40% | -25.86% |
Max Drawdown (5Y)Largest decline over 5 years | -67.68% | -41.62% | -26.06% |
Max Drawdown (10Y)Largest decline over 10 years | -96.21% | -75.66% | -20.55% |
Current DrawdownCurrent decline from peak | -99.93% | -96.19% | -3.74% |
Average DrawdownAverage peak-to-trough decline | -86.92% | -82.72% | -4.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 26.68% | 5.19% | +21.49% |
Volatility
SDD vs. SEF - Volatility Comparison
ProShares UltraShort SmallCap600 (SDD) has a higher volatility of 9.35% compared to ProShares Short Financials (SEF) at 3.98%. This indicates that SDD's price experiences larger fluctuations and is considered to be riskier than SEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SDD | SEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.35% | 3.98% | +5.37% |
Volatility (6M)Calculated over the trailing 6-month period | 24.32% | 11.08% | +13.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 36.17% | 14.54% | +21.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 43.23% | 17.99% | +25.24% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 45.16% | 20.53% | +24.63% |
SDD vs. SEF - Expense Ratio Comparison
Both SDD and SEF have an expense ratio of 0.95%.
Dividends
SDD vs. SEF - Dividend Comparison
SDD's dividend yield for the trailing twelve months is around 6.11%, more than SEF's 3.44% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
SDD ProShares UltraShort SmallCap600 | 6.11% | 5.07% | 4.34% | 3.84% | 0.33% | 0.00% | 0.00% | 1.20% | 0.52% |
SEF ProShares Short Financials | 3.44% | 4.33% | 5.72% | 4.43% | 0.39% | 0.00% | 0.12% | 1.25% | 0.41% |
Frequently Asked Questions
SDD and SEF have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SDD has higher volatility (9.35%) compared to SEF (3.98%). In terms of maximum drawdown, SDD dropped -99.93% vs SEF's -96.51%.
On 10-year performance, SEF leads with -11.70% vs -26.75% for SDD. Both ETFs have the same 0.95% expense ratio. On volatility, SEF has been the lower-risk option at 3.98%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SEF has performed better with a -11.70% return vs -26.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SDD and SEF have the same expense ratio: 0.95% per year.
SDD has the higher dividend yield at 6.11%, compared with 3.44% for SEF.
SDD tracks S&P Small Cap 600 (-200%), while SEF tracks Dow Jones U.S. Financials Index (-100%).
SEF currently has the higher Sharpe Ratio (0.00 vs -1.15), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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