RWM vs ZVOL

RWMBProShares Short Russell2000

ZVOLBVolatility Shares Volatility Premium Plus ETF

In short

RWM Short small caps at one speed: RWM targets the inverse of the Russell 2000's daily move, with no 2x or 3x multiplier on top. Trading since 2007, at 0.95% net of a waiver through September 30, 2027.

ZVOL Short volatility, but further out the curve. ZVOL takes daily inverse exposure to mid-term VIX futures instead of the front month, aiming to monetize the roll premium in those contracts, and it pays out monthly.

Stated mandate

RWM The fund seeks daily investment results, before fees and expenses, that correspond to the inverse of the Russell 2000 Index's daily performance.

ZVOL The Fund seeks daily results, before fees and expenses, corresponding to the S&P 500 VIX Mid-Term Futures Inverse Daily Index.

Why people hold it

• RWM Straight -1x, not a multiplier: it tracks the inverse of the Russell 2000's daily move, where stablemate TWM targets -2x on the same index.proshares.com
• ProShares calls it the only -1x ETF tied to the Russell 2000, the index of the 2,000 smallest US names in the Russell 3000.proshares.comproshares.com 2
• Trading since January 2007 and one of the busier funds in the inverse-equity aisle, so entering and exiting is rarely the hard part.
• Fee is 0.95% net of a waiver through September 30, 2027 (1.05% gross), near what this category charges, and it rates among the strongest builds in its peer group.

• ZVOL Most short-vol trades crowd the front month. ZVOL works the mid-term end of the VIX curve, the fourth through seventh contracts, which move less violently than the nearest ones.sec.gov
• Income is the point, not a byproduct: continuously rolling short VIX futures is expected to produce a volatility premium or roll yield, which the fund declares as a monthly dividend.sec.govvolatilityshares.com
• A registered 1940 Act fund, with futures exposure held through a wholly owned Cayman subsidiary rather than a bare commodity pool.sec.gov
• Sits in the upper half of the inverse and leveraged funds we grade, with a risk profile calmer than most of that crowd, thanks to the mid-term contracts and single inverse exposure.

Worth knowing

• RWM The -1x target resets daily. Hold longer and compounding rules: ProShares says multi-day returns can differ significantly from the target, in amount and even direction.proshares.comproshares.com 2
• Symmetric by design: on days the Russell 2000 climbs, the fund is built to lose roughly as much as the index gains.proshares.com
• Fund documents tell investors to monitor holdings as frequently as daily, which puts this at the hands-on end of the shelf.proshares.com

• ZVOL The mandate resets daily. Hold past one day and returns compound, so results can drift well away from the inverse of the index, and a volatility spike cuts against the position.volatilityshares.com
• Fees run above the neighborhood: 1.42% versus a 1.21% median for bear and leveraged funds. SVXY does short-vol at 0.95%, though from the short-term end of the curve.
• It is a small, thinly traded fund, so limit orders earn their keep. The issuer also expects part or all of each distribution to be return of capital rather than new profit.volatilityshares.com

Full RWM profile⁠

Full ZVOL profile⁠