Inverse ETF Plays for a Bearish Oil Outlook | Page 2 of 2 | ETF Trends

For the equities side, the ProShares Short Oil & Gas (NYSEArca: DDG) tries to reflect the inverse, or -100%, daily performance of the Dow Jones U.S. Oil & Gas Index. The UltraShort Oil & Gas ProShares (NYSEArca: DUG) takes two times the inverse, or -200%, daily performance of the Dow Jones U.S. Oil & Gas Index. Lastly, the Direxion Daily Energy Bear 3X Shares (NYSEArca: ERY) reflects three times the inverse, or -300%, daily performance of the energy select sector index.

Potential inverse and leveraged ETF traders should be aware that these funds may diverge from their target strategy of the long-term due to compounding issues from daily rebalancing. [Do You Know How Your Leveraged ETFs Work?]

Market Vectors Oil Service ETF

For more information on the oil market, visit our oil category.