Replies to post #489 on ETF Bull and Bear Discussion Board

[Phatlander]

Yes, it took me a little to figure that out. On my Ameritrade watch list it was showing a 400% increase. Thanks though.

[JohnCM]

Lists of Inverse ETFs and ETNs

Inverse exchange-traded funds (ETFs) and inverse exchange-traded notes (ETNs) are ways to create short positions in a large number of securities, commodities, or currencies by buying 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 other grouping of investments, if you believe its value will fall, or to hedge against downside risk in similar investments you own (in a long position).

Inverse ETFs and ETNs

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. ETFs' 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 ETNs' market prices are determined in part by the performance of the underlying index and are also affected by the perceived creditworthiness of their issuer.

Leveraged ETFs and ETNs

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.

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. Because of the complicated rebalancing involved, these inverse ETPs may not be able to accurately reflect the intended opposite performance of their benchmark beyond that particular day. And as a result, they are generally not recommended as long-term investments. (As of January 22, 2019, The Vanguard Group Inc., the second-largest provider of ETFs in the world, was no longer accepting new investments in leveraged or inverse ETFs, ETNs, or mutual funds.)

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.

You should conduct thorough research before you commit money to inverse ETFs, inverse ETNs, or any other investment.

These lists aren't intended to be comprehensive, but they cover most of the world of these ETPs. Click on the link on the ticker symbol for more information. Those marked with an asterisk are leveraged.

Inverse ETFs

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
TECS — 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
TYNS — Direxion Daily 7-10 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*

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