Dividend for ProShares UltraShort S&P500

[agras01]

To my surprise I got dividend on my SDS position.
I assume that the dividend is the interest on the purchase money, since I am long SDS and SDS is 2xsort S&P500.

Am I getting it wright?
Can somebody elaborate, please.


Agras

 

[robbie380]

almost every single etf had some sort of end of year dividend.

 

[crgarcia]

Quote from agras01:

To my surprise I got dividend on my SDS position.
I assume that the dividend is the interest on the purchase money, since I am long SDS and SDS is 2xsort S&P500.

Am I getting it wright?
Can somebody elaborate, please.


Agras

It isn't really a dividend.

Leveraged/short ETFs invest most of their money on T-Bills, and a small part in long/short index futures, accordingly.

So you really got some T-Bill interest.

 

[agras01]

thank you

 

[robbie380]

Quote from crgarcia:

It isn't really a dividend.

Leveraged/short ETFs invest most of their money on T-Bills, and a small part in long/short index futures, accordingly.

So you really got some T-Bill interest.

it's a dividend. look it up on bloomberg.