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 95 ETFs traded in the U.S. markets, Inverse ETFs gather total assets under management of $14.33B. The average expense ratio is 1.01%. Inverse ETFs can be found in the following asset classes:

  • Fixed Income
  • Equity
  • Commodities
  • Alternatives

The largest Inverse ETF is the ProShares Short S&P500 SH with $2.88B in assets. In the last trailing year, the best performing Inverse ETF was the DRIP at 399.21%. The most-recent ETF launched in the Inverse space was the iPath Series B US Treasury 10-year Bear ETN BTYS in 02/04/20.

Top ETF Performers

LABD Direxion Daily S&P Biotech Bear 3X Shares 2,205.19%
SOXS Direxion Daily Semiconductor Bear 3X Shares 890.00%
DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares 844.44%
PASS Direxion Daily Consumer Discretionary Bear 3X Shares 648.17%
WEBS Direxion Daily Dow Jones Internet Bear 3X Shares 632.98%

Bottom ETF Performers

FNGD MicroSectors FANG+ Index -3X Inverse Leveraged ETN -29.52%
FNGZ MicroSectors FANG+ Index -2x Inverse Leveraged ETN -20.09%
JDST Direxion Daily Junior Gold Miners Index Bear 2X Shares -15.03%
DUST Direxion Daily Gold Miners Index Bear 2x Shares -14.76%
SQQQ ProShares UltraPro Short QQQ -12.04%

Top Creations

SQQQ ProShares UltraPro Short QQQ 525.68
SPXU ProShares UltraPro Short S&P500 163.05
KOLD ProShares UltraShort Bloomberg Natural Gas 81.88
QID ProShares UltraShort QQQ 53.30
SPXS Direxion Daily S&P 500 Bear 3X Shares 52.01

Top Redemptions

SH ProShares Short S&P500 -85.91
SVXY ProShares Short VIX Short-Term Futures ETF -76.38
SDS ProShares UltraShort S&P500 -32.58
DOG ProShares Short Dow30 -30.69
HDGE AdvisorShares Ranger Equity Bear ETF -11.30

AUM Winners

FNGD MicroSectors FANG+ Index -3X Inverse Leveraged ETN 233.54%
WEBS Direxion Daily Dow Jones Internet Bear 3X Shares 112.11%
NRGD MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN 64.40%
REW ProShares UltraShort Technology 47.27%
NRGZ MicroSectors U.S. Big Oil Index -2X Inverse Leveraged ETN 40.39%

AUM Losers

SVXY ProShares Short VIX Short-Term Futures ETF -25.69%
FNGZ MicroSectors FANG+ Index -2x Inverse Leveraged ETN -19.98%
SOXS Direxion Daily Semiconductor Bear 3X Shares -15.04%
SEF ProShares Short Financials -14.54%
YXI ProShares Short FTSE China 50 -13.26%

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