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 115 ETFs traded in the U.S. markets, Inverse ETFs gather total assets under management of $3.40B. The average expense ratio is 1.03%. 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 $451.75M in assets. In the last trailing year, the best performing Inverse ETF was the GASX at 326.24%. 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 83.45%
DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares 53.31%
DGAZ VelocityShares 3X Inverse Natural Gas ETN 51.89%
KOLD ProShares UltraShort Bloomberg Natural Gas 34.85%
DWT VelocityShares 3x Inverse Crude Oil ETN 25.97%

Bottom ETF Performers

FNGD MicroSectors FANG+ Index -3X Inverse Leveraged ETN -5.77%
DTYS iPath US Treasury 10-Year Bear ETN -5.70%
SOXS Direxion Daily Semiconductor Bear 3X Shares -4.55%
FNGZ MicroSectors FANG+ Index -2x Inverse Leveraged ETN -3.55%
DPK Direxion Daily MSCI Developed Markets Bear 3x Shares -3.37%

Top Creations

DWT VelocityShares 3x Inverse Crude Oil ETN 150.34
SOXS Direxion Daily Semiconductor Bear 3X Shares 59.09
SPXU ProShares UltraPro Short S&P500 57.21
OILD ProShares UltraPro 3x Short Crude Oil ETF 53.58
DGAZ VelocityShares 3X Inverse Natural Gas ETN 51.99

Top Redemptions

TBT ProShares UltraShort 20+ Year Treasury -85.97
DUST Direxion Daily Gold Miners Index Bear 3x Shares -41.82
PSQ ProShares Short QQQ -25.21
DOG ProShares Short Dow30 -21.34
JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares -18.48

AUM Winners

WTID UBS ETRACS - ProShares Daily 3x Inverse Crude ETN 165.17%
KOLD ProShares UltraShort Bloomberg Natural Gas 81.15%
GASX Direxion Daily Natural Gas Related Bear 3X Shares 50.67%
DTO DB Crude Oil Double Short ETN 46.43%
SZK ProShares UltraShort Consumer Goods 41.38%

AUM Losers

OILD ProShares UltraPro 3x Short Crude Oil ETF -64.01%
MUTE Direxion Daily Communication Services Index Bear 3X Shares -49.39%
ERY Direxion Daily Energy Bear 3X Shares -42.33%
DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares -38.35%
SCO ProShares UltraShort Bloomberg Crude Oil -31.21%

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