5 Best Inverse ETFs to Buy in Q1 2025

Inverse ETFs give investors an easy way to short the market without actually shorting. Both the S&P 500 and Nasdaq indexes have drifted into bear market territory at times over recent years.

With prices expected to continue falling, Inverse ETFs have gained in popularity. Our investment experts have selected the best inverse ETFs to buy this year.

What are the top inverse ETFs to buy?

The table below lists the best inverse ETFs to buy in 2025. You can start immediately by clicking on the buttons or continue scrolling to learn more about each one and why they made our list.

1. ProShares UltraPro QQQ (TQQQ)

• Assets: $24 billion
• Expense ratio: 0.88%
• Year of inception: 2010
• Average annual return since inception: 42.24%
• 30-day SEC yield: 0.64
• Benchmark index: N/A

The UltraPro QQQ ETF is an inverse fund that has a solid track record of doing well as its average annual yield stands at over 40%. 

This fund aims at generating returns that correspond to the daily performance of the Nasdaq 100 index. For example, if the index rises by 1% in a day, its gross return will be 3%. Therefore, the fund does well when technology stocks like Nvidia, Apple, and Microsoft are doing well.

That characteristic explains why the fund has a long record of beating other generic ETFs like the Invesco QQQ ETF and the XLE fund. It also explains why its counterpart, the SQQQ ETF has dropped by almost 100% since its inception since it benefits when the Nasdaq 100 index is falling.

2. ProShares Ultra S&P 500 (SSO)

• Assets: $5.56 billion
• Expense ratio: 0.91%
• Year of inception: 2010
• Average annual return since inception: 14.1%
• Dividend Yield: 1.36%
• Benchmark index: S&P 500

Historical data shows that the S&P 500 index always rises in the long term. Sure, it has its down moments like during the dot com bubble or the Global Financial Crisis (GFC) but data shows that it always recovers. 

Therefore, the Ultra S&P 500 ETF is one of the best approaches to maximize these returns over time. The fund aims to generate 2x the daily returns of the S&P 500 index. Like the TQQQ fund, its track record has been better than the generic ETFs that track the index.

For example, between January and June 2024, the fund was up by over 28% while the SPDR S&P 500 index rose by less than 15%. Therefore, if you are long the S&P 500 index, it makes sense to invest in this fund.

3. MicroSectors FANG & Innovation 3x Leveraged ETF (BULZ)

• Assets: $1.38 billion
• Expense ratio: 0.95%
• Year of inception: 2021
• Average annual return since inception: Not Available
• Dividend Yield: N/A
• Benchmark index: Solactive FANG Innovation Index

The MicroSectors FANG & Innovation 3x Leveraged ETF is another great fund to invest in. It tracks the Solactive FANG Innovation Index, which was inspired by FANG stocks like Facebook, Apple, Netflix, and Google. 

The fund has expanded to include several other quality technology companies with a solid track record of performance and big moats. In addition to those four names, it also includes companies like Adobe, AMD, Amazon, Broadcom, Salesforce, Micron, and Nvidia. It has 15 companies in total.

The BULZ fund makes three times the daily return of the Solactive FANG Innovation Fund, which explains why it has jumped by more than 110% in the past 12 months. Its benefit is that it invests in some of the biggest US companies that have substantial moat in their industries. They are all companies with solid balance sheets.

4. Semiconductor Bull ETF (SOXL)

• Assets: $10.7 billion
• Expense ratio: 0.76%
• Year of inception: 2010
• Average annual return since inception: Not Available
• Dividend Yield: N/A
• Benchmark index: PHLX Semiconductor Sector ETF

Semiconductors have become some of the most important items in the planet since they power most items, including vehicles, refrigerators, cars, smartphones, and computers. 

They are also vital components in data centers, which power artificial intelligence and cloud computing. Therefore, the Semiconductor Bull ETF (SOXL) has become one of the best ETFs in the world as it jumped by over 556% in the past five years.

This ETF tracks the PHLX Semiconductor Sector ETF (PHLX), which tracks the biggest companies in the industry. It then generates returns that correspond to three times its daily return. 

Since semiconductor ETFs have done well over time, this explains why it has beaten the other generic funds like SOXX and SMH. It also explains why the SOXS ETF, which does the opposite of what it does has crashed by over 99% since inception.

5. ProShares UltraPro Russell2000 ETF (URTY)

• Assets: $314 million
• Expense ratio: 0.95%
• Year of inception: 2010
• Average annual return since inception: 11.28
• Dividend Yield: N/A
• Benchmark index: Russell 2000 index

The Russell 2000 index is one of the most popular indices in the US. It tracks 2,000 small and mid-cap stocks in the country across all sectors. 

The UltraPro Russell 2000 ETF aims to generate returns that are three times those of the underlying index. If the index rises by 1%, it will rise by 3% within that day.

Over the years, the Russell 2000 index has underperformed other indices like the S&P 500 and Nasdaq 100. The URTY fund has also lagged behind other leveraged funds. Still, this fund is a good one for diversification purposes.

Where to buy the best inverse ETFs

To buy the best inverse ETFs, you must register with an online brokerage firm that lists them. The table below has some of the best brokers around offering inverse ETFs. Click on any of the links to register an account and buy any of the ETFs on this page.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

4.4

Public

Min. Deposit $20

Fees 1-2%

No. assets 9000+

Demo account No

Visit site

Public.com review

Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

What is an inverse ETF?

It’s an exchange-traded fund available to buy on a stock exchange. Each fund is designed to track the performance of a particular index or industry inversely. While regular ETFs go up when the underlying index moves higher, inverse ETFs go up when the underlying index moves lower.  

Inverse ETFs can also sometimes be leveraged investments which aim to deliver 2X or 3X the returns of an underlying index. Leverage can greatly increase your profits, but remember that the same works for your losses. Inverse ETFs can make a good addition to your portfolio, offer a way to hedge, and let you ‘go short’ without actually having to short the market. 

Are inverse ETFs a good investment?

Inverse ETFs can be good investments, especially if you buy during a bear market. As bear markets don’t typically last a very long time, inverse ETFs are best suited to a short to medium-term outlook. Using leverage in many inverse ETFs means they’re best suited to experienced investors, although plenty of unleveraged options are available for beginners. 

Timing is an important factor when it comes to investing in the best inverse ETFs. When stock markets enter bearish territory or a specific industry suffers, inverse ETFs can perform well. You can also use inverse ETFs as part of a short-term trading strategy or as a way to hedge against falling stock market prices. 

It is important to weigh your options before investing and having an understanding of the wider economic climate can help you decide if an inverse ETF is the right choice for you. The latest market news and analysis is a good starting point and you can check out any of the pages below for more stock market information.

Methodology: How we choose the best inverse ETFs

At Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.

• Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
• ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
• Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
• Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
• Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.