![]() All numbers in this story are as of September 1, 2020. Experts in a particular technology are not necessarily experts in making predictions about the future of that technology. We examine the 3 inverse ETFs to short small cap stocks below. The best-performing inverse small cap ETF, based on performance during the bear market earlier this year, is the ProShares Short Midcap 400 ( MYY). The S&P 500 has provided a total return of 22.4% over the past year. ![]() While these ETFs rose significantly during the short bear market plunge earlier this year, they have fallen dramatically over the past 12 months as equities have recovered from the crash. There are 3 inverse ETFs for shorting small cap stocks, excluding leveraged ETFs. For example, an inverse ETF may return 1% on a day when its benchmark falls -1%, but you shouldn't expect it to return 10% in a year when its benchmark falls -10%. You should not expect that they will do so on longer-term returns. Inverse ETFs can be riskier investments than non-inverse ETFs, because they are only designed to achieve the inverse of their benchmark's one-day returns. ![]()
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