SDS vs. SPDN

Last updated Jun 3, 2026

SDS (ProShares UltraShort S&P500) and SPDN (Direxion Daily S&P 500 Bear 1x Shares) are both exchange-traded funds - SDS is a Leveraged Equities fund tracking the S&P 500 Index (-200%), while SPDN is a Inverse Equities fund tracking the S&P 500 Index. Both are passively managed. Over the past 5 years, SDS returned -22.48%/yr vs -9.14%/yr for SPDN. With a 0.99 correlation, they move nearly in lockstep. SDS charges 0.91%/yr vs 0.50%/yr for SPDN.

Performance

SDS vs. SPDN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort S&P500 (SDS) and Direxion Daily S&P 500 Bear 1x Shares (SPDN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SDS achieves a -18.16% return, which is significantly lower than SPDN's -8.34% return.

SDS

• 1D: -0.21%
• 1M: -9.41%
• YTD: -18.16%
• 6M: -18.17%
• 1Y: -36.23%
• 3Y*: -29.11%
• 5Y*: -22.48%
• 10Y*: -27.81%

SPDN

• 1D: -0.12%
• 1M: -4.44%
• YTD: -8.34%
• 6M: -8.19%
• 1Y: -17.88%
• 3Y*: -12.97%
• 5Y*: -9.14%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SDS vs. SPDN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDS ProShares UltraShort S&P500	-18.16%	-26.79%	-29.45%	-31.53%	30.69%	-43.02%	-49.91%	-41.17%	6.04%	-32.02%
SPDN Direxion Daily S&P 500 Bear 1x Shares	-8.34%	-11.09%	-12.88%	-15.04%	18.63%	-23.72%	-24.56%	-21.94%	5.41%	-17.16%

Correlation

The correlation between SDS and SPDN is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (All Time) Calculated using the full available price history since Jun 9, 2016	0.99

The correlation between SDS and SPDN has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

Return for Risk

SDS vs. SPDN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SDS

SDS Risk / Return Rank: 0
SDS Sharpe Ratio Rank: 0
SDS Sortino Ratio Rank: 0
SDS Omega Ratio Rank: 0
SDS Calmar Ratio Rank: 0
SDS Martin Ratio Rank: 0

SPDN

SPDN Risk / Return Rank: 0
SPDN Sharpe Ratio Rank: 0
SPDN Sortino Ratio Rank: 1
SPDN Omega Ratio Rank: 1
SPDN Calmar Ratio Rank: 0
SPDN Martin Ratio Rank: 0

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SDS vs. SPDN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort S&P500 (SDS) and Direxion Daily S&P 500 Bear 1x Shares (SPDN). 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.

	SDS	SPDN	Difference
Sharpe ratio Return per unit of total volatility	-1.54	-1.49	-0.06
Sortino ratio Return per unit of downside risk	-2.42	-2.14	-0.28
Omega ratio Gain probability vs. loss probability	0.74	0.77	-0.03
Calmar ratio Return relative to maximum drawdown	-1.02	-1.02	0.00
Martin ratio Return relative to average drawdown	-1.80	-1.89	+0.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SDS vs. SPDN - Sharpe Ratio Comparison

The current SDS Sharpe Ratio is -1.54, which is comparable to the SPDN Sharpe Ratio of -1.49. The chart below compares the historical Sharpe Ratios of SDS and SPDN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SDS	SPDN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.54	-1.49	-0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.67	-0.54	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.78	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.66	-0.70	+0.04

Drawdowns

SDS vs. SPDN - Drawdown Comparison

The maximum SDS drawdown since its inception was -99.85%, which is greater than SPDN's maximum drawdown of -75.31%. Use the drawdown chart below to compare losses from any high point for SDS and SPDN.

Drawdown Indicators

	SDS	SPDN	Difference
Max Drawdown Largest peak-to-trough decline	-99.85%	-75.31%	-24.54%
Max Drawdown (1Y) Largest decline over 1 year	-36.20%	-17.95%	-18.25%
Max Drawdown (3Y) Largest decline over 3 years	-68.14%	-38.24%	-29.90%
Max Drawdown (5Y) Largest decline over 5 years	-75.54%	-43.85%	-31.69%
Max Drawdown (10Y) Largest decline over 10 years	-96.48%	—	—
Current Drawdown Current decline from peak	-99.85%	-75.31%	-24.54%
Average Drawdown Average peak-to-trough decline	-82.73%	-48.53%	-34.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.43%	9.71%	+10.72%

Volatility

SDS vs. SPDN - Volatility Comparison

ProShares UltraShort S&P500 (SDS) has a higher volatility of 5.42% compared to Direxion Daily S&P 500 Bear 1x Shares (SPDN) at 2.78%. This indicates that SDS's price experiences larger fluctuations and is considered to be riskier than SPDN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SDS	SPDN	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.42%	2.78%	+2.64%
Volatility (6M) Calculated over the trailing 6-month period	17.78%	9.08%	+8.70%
Volatility (1Y) Calculated over the trailing 1-year period	23.55%	12.09%	+11.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.63%	16.86%	+16.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.82%	18.04%	+17.78%

SDS vs. SPDN - Expense Ratio Comparison

SDS has a 0.91% expense ratio, which is higher than SPDN's 0.50% expense ratio.

Dividends

SDS vs. SPDN - Dividend Comparison

SDS's dividend yield for the trailing twelve months is around 5.87%, more than SPDN's 4.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDS ProShares UltraShort S&P500	5.87%	5.88%	7.89%	5.77%	0.35%	0.00%	0.92%	1.84%	1.28%	0.09%
SPDN Direxion Daily S&P 500 Bear 1x Shares	4.12%	4.06%	5.32%	5.84%	0.96%	0.00%	0.10%	1.89%	1.24%	0.42%

Frequently Asked Questions

Can I hold both SDS and SPDN in my portfolio?

With a correlation of 0.99, SDS and SPDN move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SDS or SPDN?

SDS has higher volatility (5.42%) compared to SPDN (2.78%). In terms of maximum drawdown, SDS dropped -99.85% vs SPDN's -75.31%.

Which ETF is better, SDS or SPDN?

On 5-year performance, SPDN leads with -9.14% vs -22.48% for SDS. On fees, SPDN is cheaper at 0.50% per year. On volatility, SPDN has been the lower-risk option at 2.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDS or SPDN?

Over the 5-year period, SPDN has performed better with a -9.14% return vs -22.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDS or SPDN?

SPDN is cheaper with a 0.50% expense ratio, compared with 0.91% for SDS.

Which ETF pays a higher dividend yield, SDS or SPDN?

SDS has the higher dividend yield at 5.87%, compared with 4.12% for SPDN.

What is the main difference between SDS and SPDN?

SDS is categorized as Leveraged Equities, while SPDN is Inverse Equities. SDS tracks S&P 500 Index (-200%), while SPDN tracks S&P 500 Index. They also come from different issuers: ProShares and Direxion. Their fees differ too: 0.91% for SDS and 0.50% for SPDN.

Which has better risk-adjusted returns?

SPDN currently has the higher Sharpe Ratio (-1.49 vs -1.54), 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.