SSO — ProShares Ultra S&P 500 2x Leveraged ETF
SSO seeks 2x the daily return of the S&P 500 index using swaps and futures. It is less extreme than UPRO's 3x but still significantly more volatile than the underlying market. WARNING: Due to daily rebalancing, SSO experiences volatility decay over time. SSO is not a buy-and-hold substitute for SPY or VOO. However, in sustained bull markets, SSO has historically outperformed 3x funds in terms of survivability due to lower decay.
Top Holdings
Strategy
- →SHORT-TERM TRADING PREFERRED — volatility decay is less severe than 3x but still significant
- →Use for amplified S&P 500 exposure with less drawdown risk than UPRO in volatile markets
- →Limit position size — a 50% S&P 500 decline would cause approximately 84% loss in SSO
- →Some long-term backtests show SSO has generated positive long-term returns in sustained bull markets but this requires riding through devastating drawdowns
Best For
- ✓Traders seeking 2x S&P 500 amplification with lower risk than UPRO's 3x
- ✓Investors who have evaluated leveraged ETF risks and want moderate leverage on the broad market
- ✓Those expressing a near-to-medium-term bullish view on US equities with amplification
- ✓Sophisticated traders who compare 2x vs. 3x leverage trade-offs carefully
Key Risks
- ⚠VERY HIGH RISK — 2x daily leverage still causes significant volatility decay and severe drawdowns
- ⚠NOT suitable for most buy-and-hold investors — daily reset means long-term returns diverge from 2x the index total return
- ⚠In a 50% S&P 500 crash, SSO would lose approximately 84%
- ⚠High expense ratio (0.91%) vs. 0.09% for SPY
Similar ETFs
Frequently Asked Questions
Is SSO less risky than UPRO?
Yes, in the sense that 2x leverage creates less volatility decay and smaller drawdowns than 3x leverage. However, SSO is still extremely risky compared to owning the S&P 500 directly via SPY. This is educational content, not financial advice.
Has anyone successfully held SSO long-term?
In extended bull markets with manageable drawdowns, SSO has historically generated positive long-term returns. Some academic studies on lifecycle investing have explored 2x leveraged ETFs for young investors with long time horizons. However, this requires accepting periodic catastrophic drawdowns. This is educational content, not financial advice.
What is SSO's expense ratio?
SSO charges 0.91% annually plus the implicit costs of leverage (swap and borrowing costs). The total cost of ownership exceeds the listed expense ratio. This is educational content, not financial advice.
How does SSO behave during market crashes?
SSO magnifies losses. In the 2008–2009 crisis, the S&P 500 fell roughly 57%; SSO fell approximately 84%. In 2022, the S&P 500 fell ~20%; SSO fell approximately 37%. This is educational content, not financial advice.
Does SSO pay dividends?
SSO may make small periodic distributions, but it is primarily a capital appreciation vehicle. The leverage costs significantly reduce any income. This is educational content, not financial advice.
Recommended Resources
Tools & books I actually use and recommend
Interactive Brokers
Low commissions, global market access, and professional-grade tools. This is where I hold my positions.
Open an AccountA Random Walk Down Wall Street
Burton Malkiel's classic case for index investing. The book that convinced millions to stop stock-picking.
View on AmazonTradingView
Best charting platform out there. Real-time data, screeners, and a community of millions of traders.
Try TradingViewSome links above are affiliate links. I only recommend products I personally use. See my full disclosures.