SDS stands for "Slotted Drive System". Originally developed by Bosch®, SDS bits are widely used in larger rotary hammer drills. The special slot milled into the bit provides greater holding power when compared to round shank bits in a standard three-jaw chuck. The extra holding power is required when working in heavy-duty masonry drilling operations.
SDS bits for hammer drills/rotary hammers allow the bit to slide in the chuck and enhance the hammering action of the tool. For most applications, these bits provide plenty of torque.
SDS Max bits are similar to SDS bits, but have larger shanks and come in larger sizes than SDS bits. These powerful bits are useful in industrial applications.