Inverse (Bear Market) Exchange Traded Funds (ETFs)

Inverse (Bear Market) Exchange Traded Funds (ETFs)

What are Inverse (Bear Market) ETFs?

Inverse ETFs let you profit when a particular index or stock sector goes down. Double-inverse ETFs let you earn two dollars for every one dollar the index falls.

The "inverse" part means that instead of moving up and down with the markets, they do the opposite. So, an inverse ETF focused on Dow stocks will go UP when the Dow goes DOWN. In other words, you can expect it to produce roughly the mirror image of the Dow's performance.

There are also DOUBLE (or UltraShort or 2x) and TRIPLE (3x) inverse ETFs. They can be expected to go up twice or three times as much as the Dow goes down.

These funds are related to leveraged ETFs in that they provide -1x return on an underlying index. Similar to leveraged ETFs, this inverse return is provided on a daily basis, and investors should not expect the promised daily leverage of these returns to persist over periods longer than a day. Inverse ETFs generate their returns through the use of derivative positions. Because derivatives are taxed differently from equity or fixed-income securities, investors should be aware that these funds may not have the same tax efficiencies that investors have come to expect from many ETF products.

2009 Performance of Inverse ETFs

YTD ETF Performance

The SEC issued an Alert about the risks associated with leveraged and inverse ETFs. Read the Alert.

Inverse ETFs

*click on the symbol to view the fund's chart & profile on Yahoo Finance (opens a new window)

Symbol (*)

Name

Fund Family

Investment Objective

(all short)

Total Net Assets / Avg Vol (3m)

		Treasuries (all short)
TBT	UltraShort 20+ Year Treasury	ProShares	2x Treasury	$4,176,883,225
PST	UltraShort 7-10 Year Treasury	ProShares	2x Treasury	$338,113,638
TMV	Daily 30 Yr Trs Bear 3X Shares	Direxion Funds	3x Treasury	$88,101,120
TBF	Short 20+ Year Treasury	ProShares	Treasury	$30,704,870
SDP	UltraShort Utilities	ProShares	2x Utilities	$9,069,202

		Indexes
DOG	Short Dow30	ProShares	Dow30	$260,900,136
SH	Short S&P500	ProShares	S&P S&P 500 Index	$1,476,369,473
SDS	UltraShort S&P500	ProShares	2x S&P 500 Index	$3,442,264,241
RSW	Inverse 2x S&P 500	Rydex	2x S&P 500 Index	$97,547,882
SPXU	UltraPro Short S&P500	ProShares	3x S&P 500 Index	$131,142,596
PSQ	Short QQQ	ProShares	NASDAQ-100 index	$179,418,954
QID	UltraShort QQQ	ProShares	2x NASDAQ-100	$1,049,138,044
SQQQ	UltraPro Short QQQ	ProShares	3x NASDAQ-100	558,208
RWM	Short Russell2000	ProShares	Russell2000	$112,290,445
SRTY	UltraPro Short Russell2000	ProShares	3x Russell 2000	$25,650,000
TWM	UltraShort Russell2000	ProShares	2x Russell 2000	$378,510,406
TZA	Daily Small Cap Bear 3X Shares	Direxion	3x Russell 2000	$383,337,035
BGZ	Daily Large Cap Bear 3X Shares	Direxion	3x Russell 1000	$350,563,142
MYY	Short MidCap400	ProShares	MidCap400	$42,648,224
MZZ	UltraShort MidCap400	ProShares	2x MidCap400	$45,685,993
SBB	Short SmallCap 600	ProShares	SmallCap 600	$40,673,315
SDD	UltraShort SmallCap600	ProShares	2x SmallCap 600	$27,369,263

		Financials
FAZ	Daily Financial Bear 3X Shares	Direxion	3x Financials	$1,176,161,412
SKF	UltraShort Financials	ProShares	2x Financials	$824,689,557
SEF	Short Financials	ProShares	Financials	$97,349,220

		Precious Metals

ZSL	UltraShort Silver	ProShares	2x Silver	$54,139,455
GLL	UltraShort Gold	ProShares	2x Gold	$38,866,237
DZZ	DB Gold Double Short ETN	PowerShares / Deutsche Bank AG	2x Gold	$64,545,156
DUST	Daily Gold Miners Bear 2x	Direxion	2x short, gold miners	N/A
PTD	E-TRACS UBS Short Platinum ETN	UBS AG	Platinum	$5,505,600
DGZ	DB Gold Short ETN	PowerShares	Gold	$22,237,190

		Real Estate
SRS	UltraShort Real Estate	ProShares	2x Real Estate	$828,341,923
DRV	Daily Real Estate Bear 3X Shrs	Direxion Funds	3x Real Estate	$29,589,218

		Currencies
UDN	DB US Dollar Index Bearish	PowerShares	US Dollar	$335,716,799
DRR	Market Vectors Double Short Euro ETN	Morgan Stanley Funds (UK)	2x Euro	$26,900,500
EUO	UltraShort Euro	ProShares	2x Euro	$38,808,752
YCS	UltraShort Yen	ProShares	2x Yen	$23,203,455

		International / Emerging Markets
FXP	UltraShort FTSE/Xinhua China25	ProShares	2x China25	$340,006,350
EUM	Short MSCI Emerging Mkts	ProShares	Emerging Mkts	$227,332,090
EEV	UltraShort MSCI Emerging Mkts	ProShares	2x Emerging Mkts	$180,492,004
EDZ	Daily Emrg Mkts Bear 3X Shares	Direxion Funds	3x Emerging Mkts	$82,687,093

		International / Developed Markets
EFZ	Short MSCI EAFE	ProShares	Developed markets (Europe, Australasia, Far East), excluding the US & Canada	$54,566,119

		Energy
DUG	UltraShort Oil & Gas	ProShares	2x Oil & Gas	$328,697,801
DTO	Crude Oil Dble Short ETN	PowerShares / Deutsche Bank AG	2x Crude Oil	$105,038,713
ERY	Daily Energy Bear 3X Shares	Direxion Funds	3x Energy	$82,216,900
SCO	UltraShort DJ-AIG Crude Oil	ProShares	2x Crude Oil	$83,573,152
SZO	DB Crude Oil Short ETN	PowerShares	Crude Oil	$26,315,405
DDG	Short Oil & Gas	ProShares	Oil & Gas	$16,390,414

		Basic Materials
SMN	UltraShort Basic Materials	ProShares	Basic Materials	$120,488,071

SCC	UltraShort Consumer Services	ProShares	2x Consumer Services	$59,586,641
TYP	Daily Technology Bear 3X Shares	Direxion Funds	3x Technology	$40,242,953
SSG	UltraShort Semiconductor	ProShares	2x Semiconductor	$30,855,738
EFU	UltraShort MSCI EAFE	ProShares	2x MSCI EAFE index	$28,383,687
REW	UltraShort Technology	ProShares	2x Technology	$25,368,628
SIJ	UltraShort Industrials	ProShares	2x Industrials	$23,331,139
SZK	UltraShort Consumer Goods	ProShares	2x Consumer Goods	$21,804,079
RRZ	Inverse 2x Russell 2000	Rydex	2x Russell 2000	$16,435,609
DMM	delisted 12/28/09 Major Metro Housing Down	MacroShares	Major Metro Housing	$13,486,108
DEE	Commodity Dble Short ETN	PowerShares / Deutsche Bank AG	crude oil, heating oil, corn, wheat, gold and aluminum 2x Commodity	$12,869,584
SMK	UltraShort MSCI Mexico InvstMt	ProShares	2x MSCI Mexico Investable Market index	$12,673,410
SFK	UltraShort Russell1000 Growth	ProShares	2x Russell1000	$12,551,736
MWN	Daily Mid Cap Bear 3X Shares	Direxion Funds	3x Mid Cap	$11,749,672
SJH	UltraShort Russell2000 Value	ProShares	2x Russell2000 Value	$11,375,536
EWV	UltraShort MSCI Japan	ProShares	2x MSCI Japan index	$11,199,502
DDP	Commodity Short ETN	PowerShares / Deutsche Bank AG	Commodity (crude oil, heating oil, corn, wheat, gold and aluminum)	$10,772,162
SKK	UltraShort Russell2000 Growth	ProShares	2x Russell2000 Growth	$10,118,529
TYO	Daily 10 Yr Trs Bear 3X Shares	Direxion Funds	3x Treasury	$9,527,108
SJF	UltraShort Russell1000 Value	ProShares	2x Russell1000 Value	$8,784,168
AGA	Agriculture Dble Shrt ETN	PowerShares / Deutsche Bank AG	2x Agriculture (equal percentages of corn, wheat, soybean, and sugar futures contracts	$7,942,874
SDK	UltraShort Russell MidCap Gr	ProShares	2x Russell MidCap Growth index	$6,946,455
RXD	UltraShort Health Care	ProShares	2x Health Care	$6,234,868
RFN	Inverse 2x S&P Select Sector Fincl	Rydex	2x Financial Select Sector Index	$6,095,342
EPV	UltraShort MSCI Europe	ProShares	2x MSCI Europe index (16 developed European countries)	$6,073,563
CMD	UltraShort DJ-AIG Commodity (19 commodities)	ProShares	2x Commodity	$5,425,641
RMS	Inverse 2x S&P MidCap 400	Rydex	2x S&P MidCap 400	$5,230,694
BZQ	UltraShort MSCI Brazil	ProShares	2x MSCI Brazil index	$4,993,682
SJL	UltraShort Russell MidCap Val	ProShares	2x Russell Midcap value index	$4,609,613
DPK	Daily Dev Mkts Bear 3X Shrs	Direxion	3x MSCI EAFE Index	$4,388,915
TWQ	UltraShort Russell3000	ProShares	2x Russell3000	$4,311,760
ADZ	Agriculture Short ETN	PowerShares / Deutsche Bank AG	Agriculture	$3,336,728
BOS	Base Metals Short ETN	PowerShares / Deutsche Bank AG	Base Metals	$2,686,900
BOM	Base Metals Dble Shrt ETN	PowerShares / Deutsche Bank AG	2x Base Metals	$2,500,445
RTW	Inverse 2x S&P Select Sector Tech	Rydex	2x S&P Select Sector Tech	$2,226,003
JPX	UltraShort MSCI Pacific ex-Jpn	ProShares	2x MSCI Pacific ex-Japan index	$2,205,412
RHO	Inverse 2x S&P Select Sector Hlth	Rydex	2x Health Care Select Sector Index	$2,003,948
REC	Inverse 2x S&P Select Sector Engy	Rydex	2x Energy Select Sector Index	$1,572,386
TLL	UltraShort Telecommunications	ProShares	Telecom	$1,280,384

All symbols listed above (cut & paste to your watch list):

TBT SDS SH FAZ QID SRS SKF DXD TZA TWM BGZ FXP PST UDN DUG DOG EUM EEV PSQ SPXU SMN RWM DTO RSW SEF TMV SCO EDZ ERY DZZ SCC EFZ ZSL MZZ MYY SBB TYP GLL EUO SSG TBF DRV EFU SDD DRR SZO REW SIJ YCS DGZ SZK RRZ DDG DMM DEE SMK SFK MWN SJH EWV DDP SKK TYO SDP SJF AGA SDK RXD RFN EPV PTD CMD RMS BZQ SJL DPK TWQ ADZ BOS BOM RTW JPX RHO REC TLL

2009 Performance of Inverse ETFs

2008 Performance of Inverse ETFs

Revised: 01/15/11