Inverse ETFs
709 ETFs · AUM: $601.28B
Inverse ETFs are designed to profit when their underlying index declines, making them useful tools for hedging portfolio risk or expressing a bearish outlook on the market. These funds use derivatives to deliver the opposite daily return of their benchmark, so when the S&P 500 falls 1%, a 1x inverse S&P 500 ETF aims to gain 1%.
Commonly used inverse ETFs include SH (ProShares Short S&P 500), which provides -1x daily exposure to the S&P 500, SQQQ (ProShares UltraPro Short QQQ), which delivers -3x daily returns of the NASDAQ-100 for aggressive bearish bets, and DOG (ProShares Short Dow30), which offers -1x exposure to the Dow Jones Industrial Average.
Inverse ETFs serve as portfolio hedging instruments and short-term trading vehicles. They allow investors to profit from market declines without short selling or using options. However, like leveraged ETFs, they reset daily and suffer from compounding effects over longer periods. In a rising market, inverse ETFs lose money steadily. Even in volatile markets, daily rebalancing can erode returns. SH is the most conservative choice for hedging a stock portfolio, while leveraged inverse funds like SQQQ are strictly for experienced short-term traders. Always define your exit strategy before entering an inverse ETF position.
709 ETFs found
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| Symbol▼ | Fund Name▼ | AUM▼ | Price▼ |
|---|---|---|---|
| AGA | DB Agriculture Double Short ETN | — | — |
| EMSA | iPath Short Enh MSCI Emerg Mkts ETN | — | — |
| AGATF | DB Agriculture Double Short ETN | — | — |
| DBV | Invesco DB G10 Currency Harvest Fund | — | — |
| TVIX | VelocityShares Daily 2x VIX Short-Term ETN | — | — |
| SFIG | WisdomTree U.S. Short-Term Corporate Bond Fund | — | — |
| ZYN | Defiance Daily Target 2x Long PM ETF | — | — |
| LMHB | Legg Mason, Inc. JR SUB NT 56 | — | — |
| IVOP | iPath Inverse S&P 500 VIX Short-Term Futures ETN (II) | — | $38.00 |