Inverse Equities ETFs, also known as "short" or "bear" ETFs, are exchange-traded funds that seek to provide returns that are opposite of the performance of a particular equity index or benchmark. These ETFs use investment techniques such as short selling, derivatives, and options to achieve this goal.

For instance, if an ETF tracks the S&P 500 index and it's an inverse ETF, it will aim to produce returns that are opposite to the S&P 500 index. So if the index goes up by 1%, the ETF will aim to go down by 1%, and vice versa. This can help investors to profit from a declining market or hedge against market risk.

Inverse ETFs are considered a more advanced investment strategy and are suitable for experienced investors with a high-risk tolerance and looking for a more active investment strategy. It's important to note that these ETFs are usually more complex and volatile than traditional ETFs, and investors should carefully consider the risks before investing. They are also designed to be held for short-term and not long-term investments.

Inverse Equities

The Direxion Daily NFLX Bear 1X Shares (NFXS) is a single-stock inverse ETF that seeks daily investment results, before fees and expenses, of -100% of the daily performance of Netflix, Inc. (NFLX) common shares. The fund uses swaps and other derivatives to deliver one-day inverse exposure to NFLX and is designed as a short-term trading tool for investors who understand leverage and inverse risk. It is not intended for holding periods longer than a single trading day due to daily resetting of its exposure.

NasdaqGM

NFXS

The T-REX 2X Inverse MSTR Daily Target ETF seeks daily investment results of -200% of the daily performance of MicroStrategy Inc. stock, aiming for inverse exposure on a daily basis rather than over longer periods.

Cboe US

MSTZ

The Defiance Daily Target 2X Short MSTR ETF seeks daily leveraged investment results of -2x the daily percentage change in MicroStrategy Incorporated shares and is designed for daily trading exposure.

SMST

This actively managed ETF seeks to generate monthly income through a synthetic covered put strategy on COIN, providing indirect short exposure to COIN's share price and managing potential losses by purchasing out-of-the-money call options to limit downside risk if the share price rises significantly.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
NFXS	Direxion Daily NFLX Bear 1X Shares	2.09	—	—	72
MSTZ	T-REX 2X Inverse MSTR Daily Target ETF	1.95	—	—	69
SMST	Defiance Daily Target 2X Short MSTR ETF	1.65	—	—	64
FIAT	YieldMax Short COIN Option Income Strategy ETF	1.28	—	—	43
MSFD	Direxion Daily MSFT Bear 1X Shares	0.98	—	—	33

Top Inverse Equities ETFs by Sharpe Ratio

Top Inverse Equities ETFs by Sharpe Ratio