SMN provides 2x inverse exposure on a daily basis to the S&P Materials Select Sector Index, a market cap-weighted index that could include companies involved in the production of aluminum, steel, non-ferrous metals, commodity and specialty chemicals, forest and paper products, as well as the mining of precious metals and coal. The daily distinction is critical, since the fund will start to drift from its -2x target returns over periods of greater than one day. Because of that, the fund's return for periods longer than a day becomes path-dependent and is likely to be different from -2x the return of the index for the same period. As a geared product with daily resets, SMN is designed as a short-term trading tool and not a long-term investment vehicle. Long-term returns could materially differ from those of the underlying index due to daily compounding. Prior to Mar. 20, 2023, the fund was called ProShares UltraShort Basic Materials that tracked the Dow Jones U.S. Basic Materials Index.
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