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 89 ETFs traded in the U.S. markets, Inverse ETFs gather total assets under management of $12.11B. 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 $2.26B in assets. In the last trailing year, the best performing Inverse ETF was the KOLD at 42.42%. 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

KOLD ProShares UltraShort Bloomberg Natural Gas 49.30%
TAPR Barclays Inverse U.S. Treasury Composite ETN 26.43%
DUST Direxion Daily Gold Miners Index Bear 2x Shares 14.68%
JDST Direxion Daily Junior Gold Miners Index Bear 2X Shares 11.87%
SVXY ProShares Short VIX Short-Term Futures ETF 8.84%

Bottom ETF Performers

NRGD MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN -67.36%
HIBS Direxion Daily S&P 500 High Beta Bear 3X Shares -51.24%
NRGZ MicroSectors U.S. Big Oil Index -2X Inverse Leveraged ETN -47.48%
DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares -44.22%
BNKD MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETN -43.86%

Top Creations

SH ProShares Short S&P500 105.03
CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares 78.80
TZA Direxion Daily Small Cap Bear 3X Shares 65.76
PSQ ProShares Short QQQ 35.60
TBF ProShares Short 20+ Year Treasury 29.28

Top Redemptions

SDS ProShares UltraShort S&P500 -48.99
DUST Direxion Daily Gold Miners Index Bear 2x Shares -34.55
RWM ProShares Short Russell2000 -29.66
SVXY ProShares Short VIX Short-Term Futures ETF -29.18
SQQQ ProShares UltraPro Short QQQ -16.56

AUM Winners

CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares 131.87%
GLL ProShares UltraShort Gold 57.14%
DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares 52.94%
LABD Direxion Daily S&P Biotech Bear 3X Shares 39.19%
SVXY ProShares Short VIX Short-Term Futures ETF 19.74%

AUM Losers

KOLD ProShares UltraShort Bloomberg Natural Gas -55.58%
NRGZ MicroSectors U.S. Big Oil Index -2X Inverse Leveraged ETN -46.47%
DWSH AdvisorShares Dorsey Wright Short ETF -44.94%
BNKD MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETN -42.42%
DDG ProShares Short Oil & Gas -42.33%

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