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 101 ETFs traded on the U.S. markets, Inverse ETFs have total assets under management of $21.78B. The average expense ratio is 1.06%. Inverse ETFs can be found in the following asset classes:

  • Equity
  • Currency
  • Fixed Income
  • Alternatives
  • Commodities

The largest Inverse ETF is the ProShares UltraPro Short QQQ SQQQ with $4.91B in assets. In the last trailing year, the best-performing Inverse ETF was DGZ at 2.63%. The most recent ETF launched in the Inverse space was the Direxion Daily AMZN Bear 1X Shares AMZD on 09/07/22.

Top ETF Performers

BNKD MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETN 64.24%
KOLD ProShares UltraShort Bloomberg Natural Gas 54.53%
FAZ Direxion Daily Financial Bear 3X Shares 34.48%
LABD Direxion Daily S&P Biotech Bear 3X Shares 32.02%
TZA Direxion Daily Small Cap Bear 3X Shares 20.22%

Bottom ETF Performers

GDXD MicroSectors Gold Miners -3X Inverse Leveraged ETN -44.30%
JDST Direxion Daily Junior Gold Miners Index Bear 2X Shares -30.98%
DUST Direxion Daily Gold Miners Index Bear 2x Shares -30.75%
BERZ MicroSectors FANG & Innovation -3x Inverse Leveraged ETN -30.47%
FNGD MicroSectors FANG+ Index -3X Inverse Leveraged ETN -27.50%

Top Creations

SQQQ ProShares UltraPro Short QQQ 629.66
SARK AXS Short Innovation Daily ETF 254.40
SOXS Direxion Daily Semiconductor Bear 3X Shares 113.16
QID ProShares UltraShort QQQ 80.02
FNGD MicroSectors FANG+ Index -3X Inverse Leveraged ETN 78.02

Top Redemptions

SPXS Direxion Daily S&P 500 Bear 3X Shares -149.60
SH ProShares Short S&P500 -120.65
SDOW ProShares UltraPro Short Dow30 -105.96
SVXY ProShares Short VIX Short-Term Futures ETF -70.81
LABD Direxion Daily S&P Biotech Bear 3X Shares -69.80

AUM Winners

SVXY ProShares Short VIX Short-Term Futures ETF 88.26%
RXD ProShares UltraShort Health Care 77.82%
NVDS AXS 1.25X NVDA Bear Daily ETF 69.22%
SZK ProShares UltraShort Consumer Staples 67.97%
SVIX VS Trust - -1x Short VIX Futures ETF 66.94%

AUM Losers

GDXD MicroSectors Gold Miners -3X Inverse Leveraged ETN -43.53%
LABD Direxion Daily S&P Biotech Bear 3X Shares -42.45%
SARK AXS Short Innovation Daily ETF -38.79%
YANG Direxion Daily FTSE China Bear 3X Shares -37.40%
TSLQ AXS TSLA Bear Daily ETF -37.09%

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