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 117 ETFs traded in the U.S. markets, Inverse ETFs gather total assets under management of $3.61B. The average expense ratio is 1.04%. Inverse ETFs can be found in the following asset classes:

  • Equity
  • Commodities
  • Alternatives
  • Fixed Income

The largest Inverse ETF is the Direxion Daily S&P 500 Bear 3X Shares SPXS with $508.98M in assets. In the last trailing year, the best performing Inverse ETF was the DGAZ at 232.96%. The most-recent ETF launched in the Inverse space was the Direxion Daily S&P 500 High Beta Bear 3X Shares HIBS in 11/07/19.

Top ETF Performers

DGAZ VelocityShares 3X Inverse Natural Gas ETN 58.71%
KOLD ProShares UltraShort Bloomberg Natural Gas 38.07%
NRGD MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN 10.74%
DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares 9.06%
NRGZ MicroSectors U.S. Big Oil Index -2X Inverse Leveraged ETN 7.33%

Bottom ETF Performers

LABD Direxion Daily S&P Biotech Bear 3X Shares -32.26%
JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares -23.96%
ZBIO ProShares UltraPro Short Nasdaq Biotechnology -22.57%
DUST Direxion Daily Gold Miners Index Bear 3x Shares -16.77%
BIS ProShares UltraShort Nasdaq Biotechnology -15.44%

Top Creations

DWT VelocityShares 3x Inverse Crude Oil ETN 137.44
SDS ProShares UltraShort S&P500 122.42
SQQQ ProShares UltraPro Short QQQ 99.70
SPXS Direxion Daily S&P 500 Bear 3X Shares 82.33
LABD Direxion Daily S&P Biotech Bear 3X Shares 78.92

Top Redemptions

DUST Direxion Daily Gold Miners Index Bear 3x Shares -67.69
SVXY ProShares Short VIX Short-Term Futures ETF -50.87
PSQ ProShares Short QQQ -49.54
HDGE AdvisorShares Ranger Equity Bear ETF -31.50
RWM ProShares Short Russell2000 -30.77

AUM Winners

KOLD ProShares UltraShort Bloomberg Natural Gas 286.79%
LABD Direxion Daily S&P Biotech Bear 3X Shares 97.07%
OILD ProShares UltraPro 3x Short Crude Oil ETF 59.44%
WEBS Direxion Daily Dow Jones Internet Bear 3X Shares 47.92%
HIBS Direxion Daily S&P 500 High Beta Bear 3X Shares 46.68%

AUM Losers

EFZ ProShares Short MSCI EAFE -35.89%
SIJ ProShares UltraShort Industrials -28.50%
TMV Direxion Daily 20+ Year Treasury Bear 3x Shares -18.23%
BIS ProShares UltraShort Nasdaq Biotechnology -14.23%
WTID UBS ETRACS - ProShares Daily 3x Inverse Crude ETN -14.09%

Daily ETF Watch

Leveraged Cannabis ETN Launches

REX Shares launched two MicroSectors cannabis ETNs, including the industry's first leveraged product.

Daily ETF Watch

UBS Launches Clone ETNs

Five new ETNs are essentially clones of existing UBS ETRACS ETNs.

Daily ETF Watch

ETF Closures Continue To Be Strong

The number doesn’t approach last year’s record, but the pace is steady.

Daily ETF Watch

Active Ultra Short Bond ETF Launches

Sit Fixed Income Advisors is the driving force behind new ETFMG product.

Features and News

Sizing Up Long/Short ETF Tools

Direxion’s long/short lineup of ETFs packs a punch both ways.

Daily ETF Watch

ETFs Falling Like Leaves

Half a dozen ETFs have shut down or will be closing in the coming weeks.

Daily ETF Watch

1st August ETF Closures Final

Three funds from ProShares have shut down.

Features and News

Fastest Growing ETFs Of The Year

ETFs like 'VOO' and 'USMV' may have seen the largest inflows of the year on an absolute dollar basis, but many ETFs are growing faster on a percentage basis.

Features and News

Worst Performing ETFs Of 2Q 2019

These funds have struggled to find their footing in a strong year for markets.