SH seeks to deliver the opposite of the daily return of the S&P 500: if the index falls one percent in a day, the fund aims to rise about one percent. The position resets daily, so returns over longer periods can differ from the inverse of the index return, and in volatile or rising markets the fund can lose value steadily. Because the stock market has tended to rise over time, holding an inverse fund for long periods has usually been costly. It is designed for short-term hedging and trading.
