ETF Insight: Using UltraShort S&P500 (SDS) as a Hedge

The introduction of inverse exchange-traded funds has provided investors with the flexibility to hedge against market movements without having to calculate complex pricing based on volatility, time decay, and other factors. Taking the shine off traditional derivatives, or more specifically, exchange-traded options, the Proshares UltraShort S&P500 ETF ( SDS A- ) offers a liquid, leveraged and manageable solution for both retail and institutional investors. So how does SDS work and why has this particular ETF gained so much attention?