2 Best Inverse ETFs in Canada (June 2026)
The best inverse ETFs in Canada include HSD.TO and HXD.TO. These ETFs are designed to move opposite to major indexes like the S&P 500 and TSX 60 on a daily basis, making them useful for short-term hedging or tactical trading rather than long-term investing.
Inverse ETFs in Canada are designed to move in the opposite direction of a specific index, allowing investors to profit from market declines or hedge their portfolios.
However, these are short-term tactical tools, not long-term investments, due to daily reset mechanics.
Below are the best options for best inverse etf canada and how to use them correctly.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top HSD.TO BetaPro S&P 500® -2x Daily Bear ETF | — | $47M | — | +7.47% | -32.72% |
HXD.TO BetaPro S&P/TSX 60 -2x Daily Bear ETF | — | $19M | — | -1.94% | -42.66% |
What Is an ETF?
An inverse ETF in Canada is an exchange-traded fund designed to deliver the opposite daily return of a specific index, such as the S&P 500 or TSX 60.
For example, HSD.TO aims to deliver the inverse (-1x) daily performance of the S&P 500, while HXD.TO provides inverse exposure to the S&P/TSX 60 Index. Other options like HIX.TO and HUV.TO offer inverse exposure to broader markets or volatility-linked strategies.
Because inverse ETFs reset daily, their long-term performance can diverge significantly from the inverse of the index. As a result, they are typically used for short-term trading or hedging, not buy-and-hold investing.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
BetaPro S&P 500® -2x Daily Bear ETF
$12.08
+7.47% YTD
Returns
YTD
+7.47%
1Y
-32.72%
3Y
-28.72%
5Y
-22.06%
BetaPro S&P/TSX 60 -2x Daily Bear ETF
$13.14
-1.94% YTD
Returns
YTD
-1.94%
1Y
-42.66%
3Y
-31.33%
5Y
-22.38%
Pros & Cons
Pros
- Allows investors to profit from declining markets
- Can be used to hedge an existing portfolio
- Accessible through regular brokerage accounts
- No need for margin or short selling
Cons
- Daily reset can lead to compounding losses over time
- Not suitable for long-term investing
- High volatility and complex behavior
- Timing the market correctly is difficult
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best inverse ETF in Canada?
HSD.TO and HXD.TO are among the most commonly used inverse ETFs in Canada, providing inverse exposure to the S&P 500 and TSX 60 respectively.
Are inverse ETFs good for long-term investing?
No. Inverse ETFs reset daily, which can lead to compounding effects that make long-term returns unpredictable. They are generally designed for short-term trading or hedging.
How do investors use inverse ETFs?
Investors typically use inverse ETFs to hedge against market downturns or to take short-term positions when they expect markets to decline. They are rarely used as core portfolio holdings.