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 119 ETFs traded in the U.S. markets, Inverse ETFs gather total assets under management of $11.57B. 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 $1.81B in assets. In the last trailing year, the best performing Inverse ETF was the SVXY at 277.78%. 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

DGAZ VelocityShares 3X Inverse Natural Gas ETN 52.18%
DGAZ VelocityShares 3X Inverse Natural Gas ETN 52.18%
GASX Direxion Daily Natural Gas Related Bear 3X Shares 47.45%
GASX Direxion Daily Natural Gas Related Bear 3X Shares 47.45%
WTID UBS ETRACS - ProShares Daily 3x Inverse Crude ETN 42.97%

BOTTOM ETF PERFORMERS

DUST Direxion Daily Gold Miners Index Bear 3x Shares -37.07%
DUST Direxion Daily Gold Miners Index Bear 3x Shares -37.07%
JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares -32.73%
JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares -32.73%
BZQ ProShares UltraShort MSCI Brazil Capped -29.94%

TOP CREATIONS

PSQ ProShares Short QQQ 191.67
PSQ ProShares Short QQQ 191.67
SH ProShares Short S&P500 175.54
SH ProShares Short S&P500 175.54
SDS ProShares UltraShort S&P500 65.07

TOP REDEMPTIONS

SQQQ ProShares UltraPro Short QQQ -85.13
SQQQ ProShares UltraPro Short QQQ -85.13
DWT VelocityShares 3x Inverse Crude Oil ETN -79.47
DWT VelocityShares 3x Inverse Crude Oil ETN -79.47
SVXY ProShares Short VIX Short-Term Futures ETF -71.35

AUM WINNERS

CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares 600.69%
CHAD Direxion Daily CSI 300 China A Share Bear 1X Shares 600.69%
JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares 90.71%
JDST Direxion Daily Junior Gold Miners Index Bear 3X Shares 90.71%
DUST Direxion Daily Gold Miners Index Bear 3x Shares 87.34%

AUM LOSERS

SCOM ProShares UltraPro Short Communication Services Select Sector ETF -76.49%
SCOM ProShares UltraPro Short Communication Services Select Sector ETF -76.49%
YCOM ProShares UltraShort Communication Services Select Sector ETF -75.91%
YCOM ProShares UltraShort Communication Services Select Sector ETF -75.91%
GDXS Proshares Ultrashort Gold Miners -54.62%

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