List of Inverse ETFs and ETNs
These very short-term investments are risky
Inverse exchange-traded funds (ETFs) and inverse exchange-traded notes (ETNs) are marketed to investors looking to profit from, or protect against, declining markets. More specifically, they are used to create so-called "short" positions (which bet on a down market) in a large number of securities, commodities, or currencies altogether. An investor buys a single product that's easily traded on an exchange.
A short position is generally taken when you sell borrowed amounts of a tradable entity with the intention of buying them back for a lower price. It's a way of betting on a drop in a market.
You can use inverse ETFs and inverse ETNs—which are both categorized as exchange-traded products (ETPs)—to inversely track an underlying index or group of investments you believe will drop in value. Or, you can use it to hedge against downside risk in similar investments you own (in a long position).
These products are really only for very short-term investments, however, and may present significant risks to less sophisticated investors, according to brokers and regulators. In fact, in January 2019, the Vanguard Group—the second-largest provider of ETFs in the world—said it would no longer accept new investments in leveraged or inverse ETFs, ETNs, or mutual funds. And E-Trade's website warns investors that the longer you hold a leveraged or inverse ETF, the greater your potential loss.
The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority issued an alert during the 2009 financial crisis warning prospective inverse ETF investors not to assume any stated performance objectives apply beyond one day.
Short-Term Investments With Higher Expenses
The values of inverse ETFs and inverse ETNs are typically recalculated every day along with the financial instruments that make them up. The complicated rebalancing involved is one reason these inverse ETPs may not be able to accurately reflect the intended opposite performance of their benchmark beyond that particular day.
In addition, because of the frequent buying and selling of their underlying derivatives, inverse ETPs usually have higher expense ratios than those of other ETPs.
How Inverse ETFs and ETNs Work
Inverse ETFs use derivatives—financial instruments that derive their value from another instrument or instruments—to mimic the opposite performance of their underlying benchmark. These derivatives typically include various types of futures contracts, which are agreements to buy or sell a particular asset at a set price on an agreed-upon date. ETF share prices generally correlate to the net asset value of their holdings.
Inverse ETNs are unsecured debt securities that provide the opposite performance of an underlying index of securities, commodities, or currencies. At maturity, they will pay the opposite of the return of the benchmark they track. You can also make money from them—and from inverse ETFs—by selling them at a higher price than the one you bought them at. Inverse ETN market prices are determined in part by the performance of the underlying index and are also affected by the perceived creditworthiness of their issuer.
How Leveraged ETFs and ETNs Work
Inverse ETFs and inverse ETNs may be also be leveraged, meaning, in this case, they aim to offer a return twice or triple the inverse return of their underlying benchmark, before fees. Leveraged ETPs offer multiples of the returns or the reverse of the returns of their benchmark, but they also may produce losses that are multiples of the usual expected losses. It's possible to quickly lose the entire value of your investment.
Inverse ETFs and ETNs aren't for investors who don't intend to actively monitor and manage their portfolios. You should conduct thorough research before you commit money to inverse ETFs, inverse ETNs, or any other investment.
List of Inverse ETFs
These lists aren't intended to be comprehensive, but they cover most of the world of ETPs. Click on the link on the ticker symbol for more information. Those marked with an asterisk are leveraged.
- BIS — ProShares UltraShort NASDAQ Biotechnology*
- CROC — ProShares UltraShort Australian Dollar*
- DDG — ProShares Short Oil & Gas
- DOG — ProShares Short Dow30
- DPK — Direxion Daily MSCI Developed Markets Bear 3X Shares*
- DRIP — Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares*
- DUG — ProShares UltraShort Oil & Gas*
- DUST — Direxion Daily Gold Miners Index Bear 3X Shares*
- DXD — ProShares UltraShort Dow30*
- EDZ — Direxion Daily MSCI Emerging Markets Bear 3X Shares*
- EEV — ProShares UltraShort MSCI Emerging Markets*
- EFU — ProShares UltraShort MSCI EAFE*
- EFZ — ProShares Short MSCI EAFE
- ERY — Direxion Daily Energy Bear 3X Shares*
- EUM — ProShares Short MSCI Emerging Markets
- EUO — ProShares UltraShort Euro*
- EWV — ProShares UltraShort MSCI Japan*
- FAZ — Direxion Daily Financial Bear 3X Shares*
- FINZ — ProShares UltraPro Short Financial Select Sector*
- FXP — ProShares UltraShort FTSE China 50*
- GASX — Direxion Daily Natural Gas Related Bear 3X Shares*
- GLL — ProShares UltraShort Gold*
- KOLD — ProShares UltraShort Bloomberg Natural Gas*
- LABD — Direxion Daily S&P Biotech Bear 3X Shares*
- MIDZ — Direxion Daily Mid Cap Bear 3X Shares*
- MYY — ProShares Short MidCap400
- MZZ — ProShares UltraShort MidCap400*
- OILD — ProShares UltraPro 3x Short Crude Oil*
- PSQ — ProShares Short QQQ
- PST — ProShares UltraShort 7-10 Year Treasury*
- QID — ProShares UltraShort QQQ*
- REK — ProShares Short Real Estate
- REW — ProShares UltraShort Technology*
- RUSS — Direxion Daily Russia Bear 3X Shares*
- RWM — ProShares Short Russell2000
- RXD — ProShares UltraShort Health Care*
- SAGG — Direxion Daily Total Bond Market Bear 1X Shares
- SBB — ProShares Short SmallCap600
- SBM — ProShares Short Basic Materials
- SCC — ProShares UltraShort Consumer Services*
- SCO — ProShares UltraShort Bloomberg Crude Oil*
- SDD — ProShares UltraShort SmallCap600*
- SDOW — ProShares UltraPro Short Dow30*
- SDP — ProShares UltraShort Utilities*
- SDS — ProShares UltraShort S&P500*
- SEF — ProShares Short Financials
- SH — ProShares Short S&P500
- SIJ — ProShares UltraShort Industrials*
- SJB — ProShares Short High Yield
- SMDD — ProShares UltraPro Short MidCap400*
- SMN — ProShares UltraShort Basic Materials*
- SOXS — Direxion Daily Semiconductor Bear 3X Shares*
- SPXS — Direxion Daily S&P 500 Bear 3X Shares*
- SPXU — ProShares UltraPro Short S&P500*
- SQQQ — ProShares UltraPro Short QQQ*
- SRS — ProShares UltraShort Real Estate*
- SRTY — ProShares UltraPro Short Russell2000*
- SSG — ProShares UltraShort Semiconductors*
- SVXY — ProShares Short VIX Short-Term Futures
- SZK — ProShares UltraShort Consumer Goods*
- TBF — ProShares Short 20+ Year Treasury
- TBT — ProShares UltraShort 20+ Year Treasury*
- TBX — ProShares Short 7-10 Year Treasury
- TEdiCS — Direxion Daily Technology Bear 3X Shares*
- TMV — Direxion Daily 20+ Year Treasury Bear 3X Shares*
- TTT — ProShares UltraPro Short 20+ Year Treasury*
- TWM — ProShares UltraShort Russell2000*
- TYBS — Direxion Daily 20+ Year Treasury Bear 1X Shares
- TYO — Direxion Daily 7-10 Year Treasury Bear 3X Shares*
- TZA — Direxion Daily Small Cap Bear 3X Shares*
- UDN — Invesco DB US Dollar Index Bearish Fund
- YCS — ProShares UltraShort Yen*
- YXI — ProShares Short FTSE China 50
- ZBIO — ProShares UltraPro Short Nasdaq Biotechnology*
- ZSL — ProShares UltraShort Silver*
List of Inverse ETNs
- BNKD — MicroSectors U.S. Big Banks Index –3X Inverse Leveraged*
- BNKZ — MicroSectors U.S. Big Banks Index –2X Inverse Leveraged*
- DFVS — iPath US Treasury 5-year Bear
- DGAZ — VelocityShares 3x Inverse Natural Gas*
- DGLD — VelocityShares 3x Inverse Gold*
- DLBR — VelocityShares Short LIBOR
- DLBS — iPath US Treasury Long Bond Bear
- DRR — Market Vectors Double Short Euro*
- DSLV — VelocityShares 3x Inverse Silver*
- DTUS — iPath US Treasury 2-year Bear
- DTYS — iPath US Treasury 10-year Bear
- DWT — VelocityShares 3x Inverse Crude Oil*
- EXIV — VelocityShares 1x Daily Inverse VSTOXX Futures
- FLAT — iPath US Treasury Flattener
- FNGD — MicroSectors FANG+ Index –3X Inverse Leveraged*
- FNGZ — MicroSectors FANG+ Index –2X Inverse Leveraged*
- GNAF — MicroSectors FANG+ Index Inverse
- KNAB — MicroSectors U.S. Big Banks Index Inverse
- NRGD — MicroSectors U.S. Big Oil Index –3X Inverse Leveraged*
- NRGZ — MicroSectors U.S. Big Oil Index –2X Inverse Leveraged*
- TAPR — Barclays Inverse U.S. Treasury Composite
- WTID — UBS ETRACS ProShares Daily 3x Inverse Crude*
- XXVFF — iPath Inverse S&P 500 VIX Short-Term Futures
- YGRN — MicroSectors U.S. Big Oil Index Inverse
- ZIV — VelocityShares Daily Inverse VIX Medium-Term
The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
U.S. Securities and Exchange Commission. "Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors." Accessed March 13, 2020.
The Vanguard Group. "Important Information about Leveraged, Inverse, and Commodity Exchange-Traded Products." Accessed March 13, 2020.
E-Trade Financial Corp. "Inverse/Leveraged Exchange-Traded Funds." Accessed March 13, 2020.
Fidelity Investments. "Inverse ETFs." Accessed March 13, 2020.