How does an inverse ETF work

An inverse ETF is an exchange traded fund (ETF) constructed by using various derivatives to profit from a decline in the value of an underlying benchmark. Inverse ETFs allow investors to make money when the market or the underlying index declines, but without having to sell anything short.

What is the best inverse ETF?

Top inverse ETFs

• ProShares UltraPro Short QQQ (SQQQ) …
• ProShares Short UltraShort S&P500 (SDS) …
• Direxion Daily Semiconductor Bear 3x Shares (SOXS) …
• Direxion Daily Small Cap Bear 3X Shares (TZA) …
• ProShares UltraShort 20+ Year Treasury (TBT)

How many inverse ETFs are there?

89 ETFs

With 89 ETFs traded on the U.S. markets, Inverse ETFs have total assets under management of $21.98B. The average expense ratio is 1.02%. Inverse ETFs can be found in the following asset classes: Equity.