How to invest in short ETFs

How can I invest in short ETFs?

Short ETFs (inverse ETFs) are designed to track the daily performance of the underlying index inversely, i.e. in the opposite direction. This is achieved through derivatives, which is why short ETFs are always synthetically replicating.

The best way to explain how short ETFs work is with an example: Let's assume that the S&P 500 rises by 1 % in value on a given day. A short (-1x) ETF on the S&P 500 will then lose around 1 % in value on that day. If the S&P 500 loses 1 % in value, the short ETF will rise by approximately 1 %. Approximately 1 % because the ETF costs (TER, transaction costs) need to be taken into account. These tend to be significantly higher for short ETFs than for ETFs that track the same index regularly (‘long’).

In addition to higher costs, another disadvantage of short ETFs is that you are investing against the trend: on average, stock markets rise over the long term.

This problem is exacerbated by what is referred to as path dependency. In short, if an ETF loses value on a given day, it needs to rise by a higher percentage the following day to return to its initial price level. Given the long-term upward trend on the stock markets, it therefore becomes increasingly unlikely over time to make profits with short ETFs.

In our view, short ETFs are therefore not suitable for long-term capital accumulation, especially if you are a rather inexperienced investor.

In this ETF guide, you will find all currently available short ETFs. Some short ETFs additionally feature a leverage factor, which further increases the risk. These short & leveraged ETFs are also listed here. By contrast, leveraged products with a ‘long’ exposure can be found in our ETF guide on leveraged ETFs.

 

The best Short ETFs by 1-year fund return as of 30-11-2025

All short ETFs ranked by fund return

The largest Short ETFs by fund size in EUR

All short ETFs ranked by fund size

The cheapest Short ETFs by total expense ratio

All short ETFs ranked by total expense ratio

Besides return, there are further important factors to consider when selecting a short ETF. In order to provide a sound decision basis, you find a list of all short ETFs with details on size, cost, age, use of profits and fund domicile ranked by fund size.

Compare all short ETFs in detail
Compare all short ETFs in a chart

Source: justETF.com; As of 05-12-2025

Return comparison of all short ETFs

The table shows the returns of all short ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best short ETF you can also perform a chart comparison.

• Cumulative
• Calendar year

Source: justETF.com; As of 30-11-2025; Calculations in EUR including dividends