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CARD vs SRTY
Which ETF would AI Choose? MAX Auto Industry -3X Inverse Leveraged ETN (CARD) vs. ProShares UltraPro Short Russell2000 (SRTY)
Key Takeaways
- Both CARD and SRTY are inverse-leveraged instruments that seek three times the inverse (-3x) of the daily performance of their respective benchmarks, making them trading tools rather than buy-and-hold vehicles.
- CARD is technically an exchange-traded note (ETN), an unsecured debt obligation, while SRTY is a traditional exchange-traded fund (ETF) that uses swaps and derivatives.
- The two products carry identical 0.95% expense ratios but differ sharply in scope: CARD targets a concentrated auto-industry index, while SRTY targets the broad small-cap Russell 2000 Index.
- Both funds reset daily, meaning returns over holding periods longer than one day can diverge significantly from -3x the index return due to compounding.
- Neither fund is designed for long-term sector exposure; each is best understood as a short-term tactical tool for hedging or directional bets.
Introduction
Investors evaluating bearish or hedging strategies often encounter two very different vehicles: MAX Auto Industry -3X Inverse Leveraged ETN (CARD) and ProShares UltraPro Short Russell2000 (SRTY). At first glance, both appear similar because they each target negative triple daily leverage. In practice, they serve distinct purposes. CARD is a narrowly focused, industry-specific inverse note tied to the U.S. auto ecosystem, while SRTY is a broad inverse bet against small-capitalization equities. This ETF comparison matters because the two funds expose portfolios to very different risk factors, volatility profiles, and sector dynamics, even though their headline mechanics look alike.
MAX Auto Industry -3X Inverse Leveraged ETN (CARD) Overview
CARD is an exchange-traded note (ETN), an unsecured debt instrument issued by Bank of Montreal, rather than a conventional fund holding a basket of securities. The note seeks to deliver three times the inverse of the daily performance of the Prime Auto Industry Index, a net total return index of U.S.-listed companies involved in automobile manufacturing, parts, retail, and new and used car dealers. CARD carries a 0.95% expense ratio and matures in 2043.
The underlying index is highly concentrated, holding roughly two dozen names, with the top five representing close to half of index weight. Prominent constituents include Ford Motor Company (F), Tesla (TSLA), Carvana (CVNA), General Motors (GM), and Rivian (RIVN), alongside AutoZone (AZO) and O'Reilly Automotive (ORLY). Sector allocation is overwhelmingly consumer cyclical, at roughly 98%, with a small industrials component. As a single-industry inverse product, CARD amplifies auto-sector-specific risks, including electric vehicle competition, financing conditions, and inventory cycles.
ProShares UltraPro Short Russell2000 (SRTY) Overview
SRTY is an exchange-traded fund that seeks daily investment results corresponding to three times the inverse (-3x) of the daily performance of the Russell 2000 Index, a widely followed benchmark of roughly 2,000 small-capitalization U.S. companies. Rather than holding underlying stocks, the fund uses swap agreements, futures, and other derivatives to generate its inverse leveraged exposure. Its expense ratio is 0.95%, matching CARD, and the fund is classified as non-diversified.
Because it references the entire Russell 2000, SRTY provides diversified inverse exposure across sectors such as financials, healthcare, industrials, and technology, rather than concentrating on a single industry. This breadth makes SRTY a macro-oriented tool tied to small-cap sentiment, credit conditions, and the broader rate environment. With substantial assets under management (AUM) and healthy daily trading volume, SRTY offers deeper liquidity than CARD, though both products remain best suited to short holding periods.
Industry and Thematic Backdrop
The two funds respond to different catalysts. CARD's fate is tied to the auto and consumer-discretionary complex, where themes such as electric-vehicle adoption, price competition from manufacturers, dealer inventory levels, and auto-loan affordability drive performance. Rising financing costs and softening used-car prices have periodically pressured the sector in recent market cycles, supporting inverse positioning when sentiment deteriorates.
SRTY, by contrast, tracks small-cap equities, which are typically more sensitive to interest-rate expectations, regional banking health, and domestic economic growth than large-cap peers. Because small caps often carry more floating-rate debt and thinner profit margins, they tend to weaken when financing conditions tighten. These distinct drivers mean the two ETFs rarely move in lockstep, even though both profit when their underlying benchmarks decline.
Performance and Positioning Comparison
In recent weeks and months, the relative positioning of these two products has reflected their underlying exposures rather than their shared leverage factor. SRTY has drawn attention during periods of small-cap weakness or risk-off sentiment, when investors seek broad inverse exposure to economically sensitive equities. CARD, with its single-industry focus, has been more volatile and more idiosyncratic, reacting to auto-specific earnings cycles among names such as TSLA, GM, and F.
Both funds are subject to volatility decay: because they reset exposure daily, choppy but directionless markets can erode value even when the underlying index ends a period flat. SRTY's diversification tends to moderate single-name shocks, while CARD's concentration can produce larger swings. For investors, the choice is less about cost — the expense ratios are identical — and more about whether the intended trade expresses a view on the auto industry specifically or on small caps broadly.
AI Screener
Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. For investors comparing inverse and leveraged products like CARD and SRTY, tools such as the AI Screener can support more systematic relative positioning.
Tickeron AI Verdict
Based on structural factors rather than any single-day move, Tickeron's AI would likely favor SRTY for most investors seeking inverse leveraged exposure. The reasoning rests on diversification, liquidity, and trend consistency: SRTY offers broad small-cap exposure with deeper trading volume and less concentration risk than CARD, whose performance hinges on a narrow, highly idiosyncratic auto index. CARD may present opportunities during pronounced auto-sector downturns, but its single-industry focus and ETN credit structure introduce additional complexity. Probabilistically, SRTY's broader, more liquid profile provides a more consistent vehicle for tactical inverse positioning, while CARD remains a specialized tool for high-conviction auto-sector views.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CARD is a Hold and SRTY is a Hold.
CARD sees MACD Histogram crosses below signal line
CARD saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 15, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 34 instances where the indicator turned negative. In 34 of the 34 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 26, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CARD as a result. In 53 of 59 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 90%.
CARD moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CARD crossed bearishly below the 50-day moving average on November 04, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 10 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CARD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CARD's RSI Oscillator exited the oversold zone, 15 of 17 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +12.02% 3-day Advance, the price is estimated to grow further. Considering data from situations where CARD advanced for three days, in 158 of 177 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
CARD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 82 of 95 cases where CARD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 86%.
SRTY's RSI Indicator leaves overbought zone
The 10-day RSI Indicator for SRTY moved out of overbought territory on October 15, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 instances where the indicator moved out of the overbought zone. In 24 of the 26 cases the stock moved lower in the days that followed. This puts the odds of a move down at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for SRTY turned negative on October 21, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In 39 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SRTY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 61 of 65 cases where SRTY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
The Momentum Indicator moved above the 0 level on November 05, 2026. You may want to consider a long position or call options on SRTY as a result. In 87 of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 90%.
SRTY moved above its 50-day moving average on November 05, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +5.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where SRTY advanced for three days, in 249 of 272 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
SRTY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 165 of 181 cases where SRTY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
| CARD | SRTY | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 88% | 4 days ago 90% |
| Stochastic ODDS (%) | 4 days ago 88% | 4 days ago 90% |
| Momentum ODDS (%) | 4 days ago 90% | 4 days ago 90% |
| MACD ODDS (%) | 4 days ago 90% | 4 days ago 90% |
| TrendWeek ODDS (%) | 4 days ago 90% | 4 days ago 90% |
| TrendMonth ODDS (%) | 4 days ago 90% | 4 days ago 90% |
| Advances ODDS (%) | 4 days ago 89% | 8 days ago 90% |
| Declines ODDS (%) | 6 days ago 90% | 6 days ago 90% |
| BollingerBands ODDS (%) | 4 days ago 90% | 4 days ago 90% |
| Aroon ODDS (%) | 4 days ago 86% | 4 days ago 90% |
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CARD and
Correlation & Price change
A.I.dvisor tells us that CARD and RUSHA have been poorly correlated (+9% of the time) for the last year. This A.I.-generated data suggests there is low statistical probability that CARD and RUSHA's prices will move in lockstep.
| Ticker / NAME | Correlation To CARD | 1D Price Change % | ||
|---|---|---|---|---|
| CARD | 100% | +1.02% | ||
| RUSHA - CARD | 9% Poorly correlated | -2.47% | ||
| ORLY - CARD | 7% Poorly correlated | -1.75% | ||
| LCID - CARD | 7% Poorly correlated | +10.40% | ||
| TSLA - CARD | 4% Poorly correlated | +4.23% | ||
| AZO - CARD | -29% Poorly correlated | -2.80% | ||
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