SPDN vs. SDS

Last updated Jun 3, 2026

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

Performance

SPDN vs. SDS - Performance Comparison

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

Returns By Period

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

SPDN

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

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%

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

SPDN vs. SDS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

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

Return for Risk

SPDN vs. SDS — Risk / Return Rank

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

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

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

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.

SPDN vs. SDS - Risk-Adjusted Trends Comparison

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

	SPDN	SDS	Difference
Sharpe ratio Return per unit of total volatility	-1.49	-1.54	+0.06
Sortino ratio Return per unit of downside risk	-2.14	-2.42	+0.28
Omega ratio Gain probability vs. loss probability	0.77	0.74	+0.03
Calmar ratio Return relative to maximum drawdown	-1.02	-1.02	0.00
Martin ratio Return relative to average drawdown	-1.89	-1.80	-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.

SPDN vs. SDS - Sharpe Ratio Comparison

The current SPDN Sharpe Ratio is -1.49, which is comparable to the SDS Sharpe Ratio of -1.54. The chart below compares the historical Sharpe Ratios of SPDN and SDS, 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

	SPDN	SDS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.49	-1.54	+0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.54	-0.67	+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	-0.70	-0.66	-0.04

Drawdowns

SPDN vs. SDS - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

SPDN vs. SDS - Volatility Comparison

The current volatility for Direxion Daily S&P 500 Bear 1x Shares (SPDN) is 2.78%, while ProShares UltraShort S&P500 (SDS) has a volatility of 5.42%. This indicates that SPDN experiences smaller price fluctuations and is considered to be less risky than SDS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

SPDN vs. SDS - Expense Ratio Comparison

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

Dividends

SPDN vs. SDS - Dividend Comparison

SPDN's dividend yield for the trailing twelve months is around 4.12%, less than SDS's 5.87% 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 SPDN and SDS in my portfolio?

With a correlation of 0.99, SPDN and SDS 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, SPDN or SDS?

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

Which ETF is better, SPDN or SDS?

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, SPDN or SDS?

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, SPDN or SDS?

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

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

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

What is the main difference between SPDN and SDS?

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

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.