ProShares UltraShort Bloomberg Crude Oil (SCO)
ARCA ARCA Primary 
SCO: Excellent On Its Day, But Timing Is Everything
ProShares UltraShort Bloomberg Crude Oil ETF is designed for short-term, leveraged bearish exposure to oil prices, not for long-term holding. SCO's structure causes significant time decay and tracking error over periods longer than a few days, making it unsuitable for buy-and-hold strategies. SCO is best used for tactical speculation or as a short-term hedge during periods of heightened oil price volatility, such as current Middle East tensions.
ProShares UltraShort Bloomberg Crude Oil ETF: Still Not For Investors
ProShares UltraShort Bloomberg Crude Oil ETF (SCO) is rated a strong sell due to high risk and poor long-term prospects for most investors. Leveraged ETFs like SCO require precise market timing to make money. Small errors can result in substantial losses, especially during volatile events like the Iran crisis.
SCO: Past Year Shows How Shorting Oil With Inverse ETFs Is Very Challenging
ProShares UltraShort Bloomberg Crude Oil ETF is a double inverse, leveraged play on crude oil futures. SCO is designed strictly for short-term trading, not long-term holding, due to roll yield, expenses, and volatility. Current oil market conditions do not justify a bearish bet via SCO, given limited downside in crude prices.
SCO: Perfectly Sensible Speculative Tool, But Not A Hold
SCO is designed as a short-term, speculative tool for betting against WTI crude oil futures, not for long-term holding or investment. The fund's construction—using futures and daily leverage resets—causes performance decay and divergence from its benchmark over time. Liquidity, tight spreads, and low costs make SCO suitable for active traders seeking leveraged exposure to short-term oil price declines.
SCO: I Don't See A Case For Shorting Crude Oil In 2025
ProShares UltraShort Bloomberg Crude Oil ETF aims to return double the inverse of crude oil futures, offering amplified returns when oil is overbought. In early 2024, I observed a bearish sentiment on oil, which, I believed, was misguided. I advise followers to avoid bearish instruments like SCO for the year ahead, as I think crude will drift higher, not lower.
Inverse Oil ETFs to Play as Oil Slips to Lowest Level Since 2021?
Oil prices declined more than 3% on Sept. 10, 2024, and fell to the lowest level since 2021 as OPEC lowers demand growth forecast.
SCO: With The OPEC Meeting Behind Us, Oil Prices Will Stay Supported
This article analyzes the ProShares UltraShort Bloomberg Crude Oil ETF within the context of the recent OPEC meeting and its impact on oil prices. OPEC+ extended oil production cuts to support prices and government budgets, in a meeting led by Saudi Arabia. This indicates OPEC's commitment to maintaining a certain price floor for oil. SCO is a leveraged short oil fund, not suitable for buy-and-hold investors.
