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 $12.13B. The average expense ratio is 1.02%. Inverse ETFs can be found in the following asset classes:

  • Equity
  • Commodities
  • Alternatives
  • Fixed Income

The largest Inverse ETF is the ProShares Short S&P500 SH with $2.01B in assets. In the last trailing year, the best performing Inverse ETF was the GASX at 335.11%. The most-recent ETF launched in the Inverse space was the MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN NRGD in 04/09/19.

TOP ETF PERFORMERS

GASX Direxion Daily Natural Gas Related Bear 3X Shares 75.98%
GASX Direxion Daily Natural Gas Related Bear 3X Shares 75.98%
DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares 65.60%
DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares 65.60%
DGAZ VelocityShares 3X Inverse Natural Gas ETN 44.30%

BOTTOM ETF PERFORMERS

JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares -40.03%
JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares -40.03%
DLBS iPath US Treasury Long Bond Bear ETN -38.49%
DLBS iPath US Treasury Long Bond Bear ETN -38.49%
DUST Direxion Daily Gold Miners Index Bear 3x Shares -31.07%

TOP CREATIONS

SH ProShares Short S&P500 121.63
SH ProShares Short S&P500 121.63
DUST Direxion Daily Gold Miners Index Bear 3x Shares 102.20
DUST Direxion Daily Gold Miners Index Bear 3x Shares 102.20
SQQQ ProShares UltraPro Short QQQ 91.58

TOP REDEMPTIONS

CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares -93.19
CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares -93.19
TBT ProShares UltraShort 20+ Year Treasury -26.84
TBT ProShares UltraShort 20+ Year Treasury -26.84
SVXY ProShares Short VIX Short-Term Futures ETF -18.18

AUM WINNERS

SCC ProShares UltraShort Consumer Services 382.00%
SCC ProShares UltraShort Consumer Services 382.00%
PASS Direxion Daily Consumer Discretionary Bear 3X Shares 127.65%
PASS Direxion Daily Consumer Discretionary Bear 3X Shares 127.65%
EFZ ProShares Short MSCI EAFE 89.25%

AUM LOSERS

CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares -88.09%
CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares -88.09%
RISE Sit Rising Rate ETF -48.62%
RISE Sit Rising Rate ETF -48.62%
DLBS iPath US Treasury Long Bond Bear ETN -37.51%

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