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 88 ETFs traded on the U.S. markets, Inverse ETFs have total assets under management of $12.25B. The average expense ratio is 1.04%. Inverse ETFs can be found in the following asset classes:

  • Equity
  • Fixed Income
  • Commodities
  • Alternatives

The largest Inverse ETF is the ProShares UltraPro Short QQQ SQQQ with $1.75B in assets. In the last trailing year, the best-performing Inverse ETF was TECS at 221.40%. The most recent ETF launched in the Inverse space was the MicroSectors Oil & Gas Exploration & Production -3X Inverse Leveraged ETN OILD on 11/08/21.

Top ETF Performers

TECS Direxion Daily Technology Bear 3X Shares 812.24%
DRV Direxion Daily MSCI Real Estate Bear 3x Shares 811.31%
LABD Direxion Daily S&P Biotech Bear 3X Shares 23.36%
SCO ProShares UltraShort Bloomberg Crude Oil 17.97%
KOLD ProShares UltraShort Bloomberg Natural Gas 14.91%

Bottom ETF Performers

SOXS Direxion Daily Semiconductor Bear 3X Shares -35.13%
SSG ProShares UltraShort Semiconductors -30.51%
BERZ MicroSectors FANG & Innovation -3x Inverse Leveraged ETN -12.34%
SQQQ ProShares UltraPro Short QQQ -10.90%
REW ProShares UltraShort Technology -8.97%

Top Creations

SPXU ProShares UltraPro Short S&P500 158.67
SQQQ ProShares UltraPro Short QQQ 149.15
TZA Direxion Daily Small Cap Bear 3X Shares 90.34
TTT ProShares UltraPro Short 20+ Year Treasury 87.62
KOLD ProShares UltraShort Bloomberg Natural Gas 67.68

Top Redemptions

TBF ProShares Short 20+ Year Treasury -91.37
SH ProShares Short S&P500 -86.56
SVXY ProShares Short VIX Short-Term Futures ETF -64.96
PSQ ProShares Short QQQ -37.29
DUST Direxion Daily Gold Miners Index Bear 2x Shares -27.68

AUM Winners

RXD ProShares UltraShort Health Care 57.14%
MJIN ETFMG 2X Daily Inverse Alternative Harvest ETF 34.83%
KOLD ProShares UltraShort Bloomberg Natural Gas 31.48%
SMN ProShares UltraShort Basic Materials 30.15%
BZQ ProShares UltraShort MSCI Brazil Capped 26.43%

AUM Losers

TZA Direxion Daily Small Cap Bear 3X Shares -24.52%
SDP ProShares UltraShort Utilities -20.13%
TECS Direxion Daily Technology Bear 3X Shares -19.73%
EMTY ProShares Decline of the Retail Store ETF -19.01%
ERY Direxion Daily Energy Bear 2X Shares -18.65%

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