Inverse ETF Overview

Inverse ETFs are powerful and complex trading instruments. They allow traders to benefit from price declines in major ETFs. For example, if the SPDR S&P 500 fund (SPY) goes down 1% on one day, you should expect that the price of ProShares Short S&P 500 ETF (SH) goes up 1% the same day. Inverse ETFs can use leverage as well to magnify their returns. Thus, these inverse-leveraged ETFs need to be handled with care.

Keep in mind that inverse ETFs deliver the desired returns over prespecified periods only—usually one day. Thus, the stated multiple (e.g., - 2x) of the fund's underlying index only attempts to do so over one-day holding periods. Consequently, inverse ETFs can be inappropriate investment vehicles to hold if you have a significantly longer holding period in mind.

With 126 ETFs traded in the U.S. markets, Inverse ETFs gather total assets under management of $16.42B. The average expense ratio is of 1.02%. Inverse ETFs can be found in the following asset classes:

  • Equity
  • Fixed Income
  • Commodities

The largest Inverse ETF is the ProShares UltraShort 20+ Year Treasury TBT with $2.11B in assets. In the last trailing year, the best performing Inverse ETF was the VMIN at 189.39%. The most-recent ETF launched in the Inverse space was the ProShares Decline of the Retail Store ETF EMTY in 11/14/17.

TOP ETF PERFORMERS

DGAZVelocityShares 3X Inverse Natural Gas ETN52.34%
KOLDProShares UltraShort Bloomberg Natural Gas34.26%
DSLVVelocityShares 3X Inverse Silver ETN23.51%
XIVVelocityShares Daily Inverse VIX Short-Term ETN17.71%
SVXYProShares Short VIX Short-Term Futures ETF17.48%

BOTTOM ETF PERFORMERS

WDRWDirexion Daily Regional Banks Bear 3X Shares-21.36%
FINZProShares UltraPro Short Financial Select Sector-18.81%
SZODB Crude Oil Short ETN-15.93%
FAZDirexion Daily Financial Bear 3X Shares-13.08%
SDOWProShares UltraPro Short Dow30-12.19%

top creations

DWTVelocityShares 3x Inverse Crude Oil ETN71.07
DGAZVelocityShares 3X Inverse Natural Gas ETN59.16
TBTProShares UltraShort 20+ Year Treasury33.12
XIVVelocityShares Daily Inverse VIX Short-Term ETN24.09
SCOProShares UltraShort Bloomberg Crude Oil19.89

top redemptions

SVXYProShares Short VIX Short-Term Futures ETF-86.23
SQQQProShares UltraPro Short QQQ-62.47
DUSTDirexion Daily Gold Miners Index Bear 3x Shares-61.37
SDSProShares UltraShort S&P500-39.03
TZADirexion Daily Small Cap Bear 3x Shares-38.36

AUM WINNERS

GASXDirexion Daily Natural Gas Related Bear 3x Shares66.19%
RXDProShares UltraShort Health Care65.75%
CHADDirexion Daily CSI 300 China A Share Bear 1X Shares42.49%
SZKProShares UltraShort Consumer Goods41.93%
REWProShares UltraShort Technology36.12%

AUM LOSERS

SSGProShares UltraShort Semiconductors-37.10%
JDSTDirexion Daily Junior Gold Miners Index Bear 3X Shares-26.30%
GDXSProshares Ultrashort Gold Miners-24.25%
VMINREX VolMAXX Short VIX Weekly Futures Strategy ETF-23.51%
DRIPDirexion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares-21.57%

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