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 85 ETFs traded on the U.S. markets, Inverse ETFs have total assets under management of $12.07B. The average expense ratio is 1.02%. 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 $1.98B in assets. In the last trailing year, the best-performing Inverse ETF was SVXY at 76.57%. The most recent ETF launched in the Inverse space was the Direxion Daily Cloud Computing Bear 2X Shares CLDS on 01/08/21.

Top ETF Performers

GDXD MicroSectors Gold Miners -3X Inverse Leveraged ETN 36.05%
DUST Direxion Daily Gold Miners Index Bear 2x Shares 26.50%
JDST Direxion Daily Junior Gold Miners Index Bear 2X Shares 17.96%
ZSL ProShares UltraShort Silver 16.27%
SMN ProShares UltraShort Basic Materials 16.16%

Bottom ETF Performers

SOXS Direxion Daily Semiconductor Bear 3X Shares -25.33%
WEBS Direxion Daily Dow Jones Internet Bear 3X Shares -25.32%
CLDS Direxion Daily Cloud Computing Bear 2X Shares -24.23%
FNGD MicroSectors FANG+ Index -3X Inverse Leveraged ETN -23.02%
SSG ProShares UltraShort Semiconductors -21.31%

Top Creations

SQQQ ProShares UltraPro Short QQQ 223.56
TBT ProShares UltraShort 20+ Year Treasury 140.46
PSQ ProShares Short QQQ 70.69
SH ProShares Short S&P500 52.40
TMV Direxion Daily 20+ Year Treasury Bear 3x Shares 52.12

Top Redemptions

CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares -59.57
LABD Direxion Daily S&P Biotech Bear 3X Shares -26.78
YANG Direxion Daily FTSE China Bear 3X Shares -5.84
SPXS Direxion Daily S&P 500 Bear 3X Shares -5.36
TBX ProShares Short 7-10 Year Treasury -2.48

AUM Winners

GDXD MicroSectors Gold Miners -3X Inverse Leveraged ETN 242.12%
SIJ ProShares UltraShort Industrials 161.61%
SEF ProShares Short Financials 67.23%
LABD Direxion Daily S&P Biotech Bear 3X Shares 63.73%
SOXS Direxion Daily Semiconductor Bear 3X Shares 46.97%

AUM Losers

SSG ProShares UltraShort Semiconductors -47.56%
REW ProShares UltraShort Technology -41.42%
FXP ProShares UltraShort FTSE China 50 -25.72%
WEBS Direxion Daily Dow Jones Internet Bear 3X Shares -25.35%
CLDS Direxion Daily Cloud Computing Bear 2X Shares -24.14%

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