How to Short the Stock Market in 2026

How to Short the S&P 500

The S&P 500 is the most popular index to short. Three inverse ETFs offer different levels of leverage:

ETF	Leverage	Expense	Best For
SH	1x	0.88%	Conservative short
SDS	2x	0.89%	Moderate leverage
SPXU	3x	0.90%	Aggressive day trades

The NASDAQ-100 is tech-heavy, making it popular for shorting during tech selloffs:

ETF	Leverage	Expense	Best For
PSQ	1x	0.95%	Conservative short
QID	2x	0.95%	Moderate leverage
SQQQ	3x	0.95%	Aggressive day trades

The Dow Jones Industrial Average can be shorted with these inverse ETFs:

ETF	Leverage	Expense	Best For
DOG	1x	0.95%	Conservative short
DXD	2x	0.95%	Moderate leverage
SDOW	3x	0.95%	Aggressive day trades

S&P 500 — Broad market exposure. Best for general bearish views on the US economy
NASDAQ-100 — Tech-heavy. Best when you're bearish on technology specifically
Dow Jones — Blue-chip focused. Best for shorting large-cap industrials and financials
Russell 2000 — Small caps. Best when small companies are expected to underperform

Inverse ETFs are designed for short-term trading (1-5 days), not long-term holds
Leverage decay erodes returns over time, especially with 2x and 3x products
Markets trend upward over the long term — shorting is inherently fighting the trend
Consider your timing and strategy carefully before shorting