🟢 Small-cap inverse ETF (SDD) is trading 2.4% up today as rising Treasury yields pressure small-cap valuations

SDD is trading 2.4% up today as rising Treasury yields pressure rate-sensitive small-cap valuations.

• SDD is designed to provide daily -2x exposure to the S&P SmallCap 600; the Russell 2000 fell 1.4% today.
• The move appears index-driven: SDD uses swaps referencing the S&P SmallCap 600 and has no individual equity holdings.
• Stronger-than-expected economic activity, higher oil prices, and renewed inflation concerns added pressure and risk-off sentiment.