Inverse ETFs: Definition and Best-Performing Examples

What is an inverse ETF?

An inverse ETF is a type of exchange-traded fund, or ETF, that bets against the expected daily performance of an asset or market index. During periods of volatility, day traders may use these “short” or “bear” ETFs as a way to reduce their exposure to or potentially even profit from downward market moves.

Inverse ETFs are risky and speculative investments that aim to achieve goals similar to short selling. As a result, the U.S. Securities and Exchange Commission describes inverse ETFs as “specialized products with extra risks for buy-and-hold investors.”[0]

7 best-performing inverse ETFs of 2023

Below are seven of the best-performing inverse ETFs. Note that those performing well today may not be performing well tomorrow.

MicroSectors Energy 3X Inverse Leveraged ETNs

MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN

AXS 1.5X PYPL Bear Daily ETF

MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN

AXS 2X PFE Bear Daily ETF

Direxion Daily S&P…

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This article was written by Alieza Durana and originally published on