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More Reading from MarketBeat.com Feeling Bearish? Try These ETFs That Take a Contrarian ApproachReported by Nathan Reiff. Originally Published: 2/23/2026. 
Key Points - The most-traded ETFs taking a short strategy have one-month average trading volumes above 53 million, ensuring liquidity for active traders.
- Three notable and highly traded bearish ETFs include SOXS, ZSL, and NVD.
- These funds provide leveraged inverse exposure to semiconductor stocks, silver, and NVIDIA shares, respectively.
- Special Report: [Sponsorship-Ad-6-Format3]
The S&P 500 rose roughly 17% in 2025 but has traded essentially flat so far in 2026. Investors are asking whether a prolonged rally will give way to a major selloff—or whether the potentially overhyped AI theme will falter. For pessimists, one approach is to focus on more stable stocks, including dividend payers, that can better withstand upcoming volatility. Others prefer a more active bearish stance, betting that the market or a specific segment will decline in the near term. Fortunately, short-focused exchange-traded funds (ETFs) cover a variety of sectors and strategies. It doesn't always pay to chase recent popularity, but trading volume can be a useful indicator of liquidity and investor interest. Below are three aggressively bearish ETFs that have also seen heavy trading. SOXS Is a Highly Leveraged Inverse Semiconductor Play The Direxion Daily Semiconductor Bear 3x Shares (NYSEARCA: SOXS) is a highly leveraged—and therefore high-risk—bet against an index of semiconductor stocks. The fund seeks to deliver -300% of the NYSE Semiconductor Index's daily performance, meaning it aims for three times the inverse of the index each day. That structure can translate daily declines across the semiconductor sector into amplified gains for SOXS holders, but it also magnifies losses if semiconductor stocks rise, even modestly. As a daily-leveraged fund, SOXS resets each day and is intended for short-term trading rather than buy-and-hold investing. Its one-month average volume is about 599 million shares and it holds roughly $1 billion in assets under management (AUM), so liquidity is unlikely to be an issue. Investors pay a premium for the strategy—SOXS has an expense ratio of 0.97%—but for bearish traders the potential for outsized gains on down days may justify the cost. A Powerful Bearish Approach to Daily Silver Price Movement After a meteoric rise through much of 2025, silver prices plunged early in 2026, showing the rally may have been unsustainable. Still, silver is up about 141% over the last year and roughly 14% year-to-date, far outpacing the S&P 500 for those periods. Investors who expect silver to fall might consider the ProShares UltraShort Silver (NYSEARCA: ZSL), which provides -2x daily exposure to the price of silver. ZSL tracks the Bloomberg Silver Subindex using futures contracts, so its performance can diverge from spot silver prices—particularly over periods longer than a single trading day. Like SOXS, ZSL's -2x exposure resets daily, which makes liquidity important. ZSL's one-month average trading volume is about 349 million shares. Its expense ratio is 0.95%, reflecting the cost of maintaining a double-inverse leverage strategy. Double Inverse Exposure to the Largest Publicly Traded Company in the World As the largest publicly traded company, NVIDIA Corp. (NASDAQ: NVDA) is a bellwether for tech, AI and broader market sentiment. Despite nearly 1,200% gains over the past five years, NVDA remains capable of sharp daily declines. The GraniteShares 2x Short NVDA Daily ETF (NASDAQ: NVD) seeks to profit from those declines by delivering -200% of NVDA's daily price movement. NVD performs best on days when NVDA falls. Its one-month average trading volume is around 53 million shares, which should be adequate for traders who need to enter and exit positions quickly. NVD's expense ratio is relatively high at 1.35%, a trade-off for the fund's leveraged inverse exposure. Important reminder: all three of these ETFs reset daily and use leverage, which can cause compounding effects and significant deviation from expected longer-term returns. They are designed for active, short-term trading and are generally unsuitable for buy-and-hold investors. Anyone considering these funds should understand the mechanics, risks and costs—or consult a financial advisor before trading.
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