ETF Ultra Short funds drop big time today but don't be alarmed

The reason the ETF Ultra Short of the S&P500, symbol SDS, dropped so much today was because the Funds are required by law to distribute profits at year end. That happens at the close today. You will notice the dividend per share will be $11.46/share. That is almost exactly what the share price drop is today. These will be Short term Capital Gains and in taxed accounts you will be required to pay a tax on the gains. For some it may be the only gains this year.