How to Short the S&P 500
4 inverse ETFs that let you bet against the S&P 500 — from any brokerage, no margin needed
TL;DR
Buy SH (1x), SDS (2x), SPXU (3x), or SPXS (3x) on any brokerage. These inverse ETFs go up when the S&P 500 goes down. No margin account, no options approval, no borrowing shares.
Risk Warning
Inverse ETFs are high-risk instruments designed for short-term trading. Leveraged versions (2x, 3x) can lose value rapidly. This is educational content, not investment advice.
S&P 500 Inverse ETFs Compared
There are 4 inverse ETFs that short the S&P 500. The key difference is leverage — how much they move relative to the index:
Which One Should You Use?
- SH (1x) — Lowest risk. Moves 1:1 inverse to the S&P 500. Least leverage decay. Suitable for multi-day hedging (up to a few weeks).
- SDS (2x) — Middle ground. Doubles the inverse move. More decay than SH but less than 3x products.
- SPXU (3x) — Maximum leverage from ProShares. Triples the inverse move. Day trading only. Lower expense ratio than SPXS.
- SPXS (3x) — Direxion's 3x version. Very similar to SPXU. Slightly higher expense ratio (1.01% vs 0.90%).
How to Buy on Any Platform
Inverse ETFs trade like regular stocks. On any brokerage:
- Search for the ticker (SH, SDS, SPXU, or SPXS)
- Enter the number of shares or dollar amount
- Place a market or limit order
- That's it — you're now short the S&P 500
Works on Robinhood, Webull, Fidelity, E*TRADE, Schwab, and every major broker.
What Would You Have Made?
During the April 2025 tariff crash, the S&P 500 dropped 5.97% in a single day. Here's what $10,000 in each inverse ETF would have returned:
| ETF | Leverage | Approx. Gain | $10K → |
|---|---|---|---|
| SH | 1x | +5.97% | $10,597 |
| SDS | 2x | +11.94% | $11,194 |
| SPXU | 3x | +17.91% | $11,791 |
| SPXS | 3x | +17.91% | $11,791 |
Simplified calculation. Actual returns vary due to tracking error and intraday volatility. Try the crash calculator →
Key Risks
- Leverage decay erodes value over time, especially with 2x and 3x products
- The S&P 500 has historically trended upward — shorting it long-term is fighting the trend
- 3x products can lose 50%+ in a strong rally week
- These are designed for short-term trades (1-5 days), not long-term positions