Inverse ETFs are powerful tools for those looking to profit from declines in the market. They allow traders to short the market without the complexity of options or futures. These ETFs are designed to move in the opposite direction of their underlying index or asset, providing traders with a way to hedge their portfolios or capitalize on downturns.
However, before diving into these trading vehicles, it’s crucial to understand their mechanics and risks. Inverse ETFs, especially the leveraged varieties, are not meant to be long-term investments. They are best used by seasoned traders who understand the risks involved, particularly the effects of daily resets and volatility drag.
Here on this page, I’ve organized three comprehensive lists of inverse ETFs to help you easily find the right one for your strategy:
1. Leveraged Short (1x) ETFs – These funds aim to provide a simple, non-leveraged inverse return.
2. Leveraged Short (2x) ETFs – Offering twice the inverse return of their benchmark, these are for traders looking for a bit more punch.
3. Leveraged Short (3x) ETFs – These ETFs provide triple the inverse exposure, and they come with significantly higher risks.
Want to short the market? Here’s our massive list of ETFs that go up when a market goes down. This list is incomplete as the universe of inverse ETFs is constantly changing. An inverse ETF goes up in price when its underlying benchmark index goes down in price. While they are definitely not perfect, inverse ETFs can serve as a unique trading vehicle in a declining market. (Premium members can click any of these ticker symbols and learn how to identify ideal entry and exit signals on these ETFs in any timeframe.)
Leveraged Short (1x) |
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|---|---|---|---|
| ETF Name | ETF Ticker Symbol | Benchmark Index | Avg. Volume |
| Short QQQ | PSQ | Nasdaq-100 | 581,727 |
| Short Dow 30 | DOG | DJIA | 277,519 |
| Short S&P 500 | SH | S&P 500 | 3,063,790 |
| Short Mid Cap 400 | MYY | S&P Mid Cap 400 | 117,162 |
| Short Small Cap 600 | SBB | S&P Small Cap 600 | 2,338 |
| Short Russell 2000 | RWM | Russell 2000 | 1,538,780 |
| Short MSCI Emerging Markets | EUM | MSCI Emerging Markets Index | 202,673 |
| DB Gold Short ETN | DGZ | Gold Index | 51,255 |
| Short MSCI EAFE | EFZ | MSCI EAFE Index | 142,200 |
Leveraged Short (2x) |
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| ETF Name | ETF Ticker Symbol | Benchmark Index | Avg. Volume |
| UltraShort QQQ | QID | Nasdaq-100 | 2,629,280 |
| UltraShort Dow 30 | DXD | DJIA | 649,656 |
| UltraShort S&P 500 | SDS | S&P 500 | 6,744,980 |
| UltraShort Mid Cap 400 | MZZ | S&P Mid Cap 400 | 7,097 |
| UltraShort Small Cap 600 | SDD | S&P Small Cap 600 | 1,444 |
| UltraShort Russell 2000 | TWM | Russell 2000 | 1,112,103 |
| UltraShort Russell1000 Value | SJF | Russell 1000 Value | 67 |
| UltraShort Russell1000 Growth | SFK | Russell 1000 Growth | 1,434 |
| UltraShort Russell Mid Cap Value | SJL | Russell Mid Cap Value | 109 |
| UltraShort Russell Mid Cap Growth | SDK | Russell Mid Cap Growth | 452 |
| UltraShort Russell 2000 Value | SJH | Russell 2000 Value | 73 |
| UltraShort Russell 2000 Growth | SKK | Russell 2000 Growth | 1,705 |
| UltraShort Basic Materials | SMN | Dow Jones U.S. Basic Materials | 9,594 |
| UltraShort Consumer Goods | SZK | Dow Jones U.S. Consumer Goods | 3,181 |
| UltraShort Consumer Services | SCC | Dow Jones U.S. Consumer Services | 4,652 |
| UltraShort Financials | SKF | Dow Jones U.S. Financials | 84,034 |
| UltraShort Health Care | RXD | Dow Jones U.S. Health Care | 3,225 |
| UltraShort Industrials | SIJ | Dow Jones U.S. Industrials | 3,725 |
| UltraShort Real Estate | SRS | Dow Jones U.S. Real Estate | 59,366 |
| UltraShort Semiconductors | SSG | Dow Jones U.S. Semiconductors | 7,486 |
| UltraShort Oil & Gas | DUG | Dow Jones U.S. Oil & Gas | 75,186 |
| UltraShort Technology | REW | Dow Jones U.S. Technology | 3,633 |
| UltraShort Utilities | SDP | Dow Jones U.S. Utilities | 13,803 |
| UltraShort MSCI EAFE | EFU | MSCI EAFE Index | 8,036 |
| UltraShort MSCI Emerging Markets | EEV | MSCI Emerging Markets index | 53,913 |
| UltraShort MSCI Japan | EWV | MSCI Japan Index | 5,752 |
| UltraShort FTSE/Xinhua China 25 | FXP | FTSE/Xinhua China 25 Index | 124,065 |
| ProShares Ultra Silver | AGQ | Silver Index | 244,631 |
| ProShares UltraShort Silver | ZSL | Silver Index | 62,586 |
| DB Gold Double Short ETN | DZZ | Gold Index | 171,505 |
| ProShares Ultra Gold | UGL | Gold Index | 42,383 |
| ProShares UltraShort Gold | GLL | Gold Index | 29,138 |
Leveraged Short (3x) |
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| ETF Name | ETF Ticker Symbol | Benchmark Index | Avg. Volume |
| UltraPro Short QQQ | SQQQ | Nasdaq-100 | 3,162,160 |
| ProShares UltraPro Short Dow 30 | SDOW | DJIA | 657,431 |
| UltraPro Short S&P 500 | SPXU | S&P 500 | 3,050,090 |
| UltraPro Short Mid Cap 400 | SMDD | S&P Mid Cap 400 | 11,422 |
| UltraPro Short Russell 2000 | SRTY | Russell 2000 | 959,267 |
| Daily S&P 500 Bear 3x Shares | SPXS | S&P 500 Index | 1,712,120 |
| Daily Mid Cap Bear 3x | MIDZ | S&P Mid Cap 400 Index | 22,453 |
| Daily Small Cap Bear 3x | TZA | Russell 2000 | 18,187,800 |
| Daily Energy Bear 3x | ERY | Energy Select Sector Index | 408,758 |
| Daily Gold Miners Bear 3x | DUST | NYSE Arca Gold Miners Index | 5,017,090 |
| Daily Junior Gold Miners Bear 3x | JDST | Market Vectors Junior Gold Miners Index | 2,728,780 |
| Daily Natural Gas Related Bear 3x | GASX | ISE Revere Natural Gas Index | 41,553 |
| Daily Real Estate Bear 3x | DRV | MSCI US REIT Index | 58,350 |
| Daily Semiconductor Bear 3x | SOXS | PHLX Semiconductor Sector Index | 127,238 |
| Daily Technology Bear 3x | TECS | Technology Select Sector Index | 58,736 |
| Daily Brazil Bear 3x | BRZS | MSCI Brazil 25-50 Index | 16,978 |
| Daily FTSE China Bear 3x | YANG | FTSE China 25 Index | 62,822 |
| Daily FTSE Europe Bear 3x | EURZ | FTSE Developed Europe Index | 2,245 |
| Daily Developed Markets Bear 3x | DPK | MSCI EAFE Index | 3,392 |
| Daily Emerging Markets Bear 3x | EDZ | MSCI Emerging Markets Index | 1,104,310 |
| Daily Russia Bear 3x | RUSS | Market Vectors Russia Index | 342,556 |
| Daily Japan Bear 3x | JPNS | MSCI Daily TR Net Japan USD Index | 2,739 |
| Daily South Korea Bear 3x | KORZ | MSCI Korea 25-50 Index | 414 |
| Daily 7-10 Year Treasury Bear 3x | TYO | NYSE 7-10 Year Treasury Bond Index | 15,800 |
| Daily 20 year Plus Treasury Bear 3x | TMV | NYSE 20 Year Plus Treasury Bond Index | 479,481 |
| Daily Financial Bear 3x | FAZ | Russell 1000 Financial Services | 3,159,050 |
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Important Investor Alert About Inverse ETFs
I encourage all traders to carefully read the SEC’s warning about the dangers of using leveraged and inverse ETFs, as these products are designed for short-term, tactical trading, not long-term holding. If you’re not experienced with these trading vehicles, do yourself a favor and avoid them until you have thoroughly educated yourself about them.
Understanding when and how to use inverse ETFs can give traders an edge during volatile markets. But always remember: with greater leverage comes greater risk.
