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Exclusive Story
These 3 ETFs Are Suitable for Ultra-Bearish InvestorsWritten by Nathan Reiff. Date Posted: 4/11/2026.
Key Points
- The field of inverse leveraged ETFs is growing, and -3x funds are available with a range of strategies incorporating industry-specific themes down to single-stock approaches.
- Tech bears may find that WEBS, FNGD, and RGTZ provide negative leveraged exposure to different segments of the space.
- WEBS is the broadest of these, focusing on a group of around 40 internet companies, while RGTZ is the narrowest with -2x leveraged exposure to Rigetti Computing.
- Special Report: Have $500? Invest in Elon’s AI Masterplan
There are plenty of reasons for investors to feel bearish in April 2026. From uncertainty around the Iran war and the energy complex to questions about the future of artificial intelligence and its effects on the workforce, those dissatisfied with the market's direction may look for ways to profit from an expected downturn. Investors with a strong conviction that a decline is coming — and who can tolerate significant risk — may consider exchange-traded funds (ETFs) that turn bearish sentiment into amplified returns: inverse leveraged ETFs. The three funds below offer varying scopes of exposure, from broad industry groups to single-stock targets, so bearish investors can choose the degree of focus that matches their market view. A Powerful Bet Against Leading Internet Companies
Liberation Day wiped over $2 trillion from markets in a single day. Then a 90-day tariff pause added $4 trillion back to the S&P 500. Trump's AI initiatives sent Palantir up over 140%. Trader Larry Benedict says all of that was just the warm-up.
Benedict is calling what comes next 'Project 2026' - a move he believes could send billions, potentially trillions, into overlooked corners of the market. He's identified one ticker sitting at the center of it all, and he's revealing the name today at no cost. Larry is calling it "Project 2026."
The Direxion Daily Dow Jones Internet Bear 3X Shares (NYSEARCA: WEBS) is a 3x inverse leveraged fund that seeks -3x the daily return of the Dow Jones Internet Composite Index. The index covers companies that derive at least half of their sales from the internet and have a three-month average market capitalization of at least $100 million. Despite that apparent niche, the index spans a wide mix of tech and consumer names — from retailers such as Amazon.com (NASDAQ: AMZN) to networking and hardware firms like Arista Networks (NYSE: ANET) to streamers such as Netflix Inc. (NASDAQ: NFLX). The index holds roughly 40 names in total. WEBS is designed to move roughly three times the inverse of the index on a daily basis: when the index falls in a trading day, WEBS aims to rise by about three times that percentage, and it magnifies gains in the index the same way on up days. That daily reset creates the potential for large single-day moves but also exposes holders to volatility decay over longer holding periods, so the fund is best suited to active, short-term traders. In exchange for that exposure, WEBS currently yields about 2.6% and carries an expense ratio of 1.07%, which is modest relative to many other leveraged products. A Narrower Focus for Inverse Leveraged Exposure to FANG+ StocksThe FANG+ group still exerts outsized influence on the S&P 500, so a targeted decline here can meaningfully affect broader market performance. For traders betting on weakness among those leaders, the MicroSectors FANG+ Index -3X Inverse Leveraged ETN (NYSEARCA: FNGD) offers -3x leveraged inverse exposure to the NYSE FANG+ Index. The index concentrates on 10 major tech names, including not only the traditional FANG stocks but also heavyweight players such as NVIDIA (NASDAQ: NVDA) and Alibaba Group (NYSE: BABA). Like WEBS, FNGD is structured for short-term tactical trades: its leverage resets daily and it is not intended as a buy-and-hold vehicle. FNGD's expense ratio is 0.95%, slightly lower than the other leveraged funds discussed here. Ultra-Targeted Bearish Bets on Single NamesSingle-stock ETFs have become more common as investors seek amplified exposure to specific companies. These funds are the most targeted on this list but also carry significant risk because their leverage concentrates on one issuer. The Defiance Daily Target 2X Short RGTI ETF (NASDAQ: RGTZ) is designed to deliver -2x the daily return of Rigetti Computing, Inc. (NASDAQ: RGTI), giving bears of quantum computing a direct, amplified way to express that view. Rigetti is one of the pure-play quantum firms, and it has struggled recently, losing nearly 40% year to date amid slow adoption, a narrow customer base, and limited profitability. That concentrated exposure comes with higher costs and other trade-offs: RGTZ has an expense ratio of 1.29% (typical for single-stock ETFs), launched in October 2025, and manages a relatively small asset base of about $32 million. The fund's limited size could be a liquidity concern for very active traders. As with all leveraged and inverse products, these ETFs and ETNs are primarily intended for experienced traders making short-term, tactical bets. They carry a high risk of large losses if the market moves against your position. Consider your time horizon, risk tolerance and, if needed, consult a financial advisor before trading these instruments. |
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