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ProShares UltraPro Short S&P 500 ETF (SPXU) offers -3x leverage but is risky for long-term holding due to leverage drift.

Analyst Insights
01 Jul 2026
Seeking Alpha
View Source
Neutral
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The ProShares UltraPro Short S&P 500 ETF (SPXU) provides -3x daily leverage, making it popular for short-term trades aiming to profit from market declines. However, it carries significant risks for long-term investors due to leverage drift, which can cause value decay especially in volatile or sideways markets. Over the past year, SPXU experienced a positive drift of 8.52%, but this is path-dependent and not guaranteed. For longer-term hedging, the -2x leveraged SDS ETF is recommended as a safer alternative because it tends to have a positive long-term drift. Investors should use SPXU mainly for tactical, short-term strategies rather than long-term holdings.

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