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 99 ETFs traded on the U.S. markets, Inverse ETFs have total assets under management of $21.44B. The average expense ratio is 1.03%. 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 $4.48B in assets. In the last trailing year, the best-performing Inverse ETF was TTT at 65.96%. The most recent ETF launched in the Inverse space was the Direxion Daily AAPL Bear 1X Shares AAPD on 08/09/22.

Top ETF Performers

YANG Direxion Daily FTSE China Bear 3X Shares 12.60%
SVXY ProShares Short VIX Short-Term Futures ETF 10.69%
WEIX Dynamic Short Short-Term Volatility Futures ETF 10.68%
FXP ProShares UltraShort FTSE China 50 8.28%

Bottom ETF Performers

FLYD MicroSectors Travel -3x Inverse Leveraged ETN -48.04%
HIBS Direxion Daily S&P 500 High Beta Bear 3X Shares -40.68%
PYPS AXS 1.5X PYPL Bear Daily ETF -40.65%
WEBS Direxion Daily Dow Jones Internet Bear 3X Shares -39.58%
NRGD MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN -38.96%

Top Creations

SQQQ ProShares UltraPro Short QQQ 1.51K
SPXU ProShares UltraPro Short S&P500 739.87
SOXS Direxion Daily Semiconductor Bear 3X Shares 310.59
KOLD ProShares UltraShort Bloomberg Natural Gas 292.39
SPXS Direxion Daily S&P 500 Bear 3X Shares 150.87

Top Redemptions

TBF ProShares Short 20+ Year Treasury -112.42
TBT ProShares UltraShort 20+ Year Treasury -99.42
YANG Direxion Daily FTSE China Bear 3X Shares -79.41
SDS ProShares UltraShort S&P500 -75.21
JDST Direxion Daily Junior Gold Miners Index Bear 2X Shares -46.50

AUM Winners

TSLQ AXS TSLA Bear Daily ETF 792.47%
SOXS Direxion Daily Semiconductor Bear 3X Shares 87.29%
JDST Direxion Daily Junior Gold Miners Index Bear 2X Shares 76.59%
AAPD Direxion Daily AAPL Bear 1X Shares 66.66%
KOLD ProShares UltraShort Bloomberg Natural Gas 62.09%

AUM Losers

PYPS AXS 1.5X PYPL Bear Daily ETF -71.29%
NKEQ AXS 2X NKE Bear Daily ETF -62.02%
MJIN ETFMG 2X Daily Inverse Alternative Harvest ETF -56.49%
PFES AXS 2X PFE Bear Daily ETF -47.71%
SZK ProShares UltraShort Consumer Goods -42.57%

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