Stock Trading

Index ETFs and Inverse Index ETFs – A Starter List

ETFs (Exchange Traded Funds) are a great way to trade the entire market (or market sectors) and steer clear of the volatility found in individual stocks.  

Because ETFs are comprised of groups of stocks you are less likely to find your position reacting to news or earnings surprises.

As the name implies, an index ETF seeks to track the performance of an index by holding in its portfolio either the contents of the index or a representative sample of the securities in the index.

In addition to index ETFs, you can also buy and sell inverse index ETFs.

These ETFs go up when the market is going down and can be a great trading vehicle for traders who are not comfortable going short but still want to capitalize on a drop in market prices.

Finally, there are leveraged index and inverse index ETFs.  These ETFs attempt to replicate the index performance in multiples.

For instance, a 2x S&P 500 index ETF will gain 2% for every 1% that the S&P 500 index gains.

With that said, below is a list of the major index ETFs and inverse index ETFs to get you started on the path of understanding how they work and adding them into your trading rotation.

*Note: Click index name for current chart.

1x Index ETFs

  • DIA – Dow Jones 30
  • SPY – S&P 500
  • QQQ – Nasdaq 100
  • IWM – Russell 2000

2x Index ETFs

  • DDM – Dow Jones 30
  • SSO – S&P 500
  • QLD – Nasdaq 100
  • UWM – Russell 2000

3x Index ETFs

  • UDOW – Dow Jones 30
  • UPRO – S&P 500
  • TQQQ – Nasdaq 100
  • URTY – Russell 2000

1x Inverse Index ETFs

  • DOG – Dow Jones 30
  • SH – S&P 500
  • PSQ – Nasdaq 100
  • RWM – Russell 2000

2x Inverse Index ETFs

  • DXD – Dow Jones 30
  • SDS – S&P 500
  • QID – Nasdaq 100
  • TWM – Russell 2000

3x Inverse Index ETFs

  • SDOW – Dow Jones 30
  • SPXU – S&P 500
  • SQQQ – Nasdaq 100
  • SRTY – Russell 2000

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