#1 Direxion Daily S&P 500 Bear 3X ETF (SPXS)
The Direxion Daily S&P 500 Bear 3X ETF (SPXS) ‘seeks daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the S&P 500 Index’. Given the strength of the American economic system — the fostering of innovation and meritocracy, the respect for the rule of law, and all the talented people who work hard to make the world a better place, productivity will likely continue increasing in the long run. As long as there is a Fed, inflation will likely increase too. Factor in population increases and stock buybacks and it’s very reasonable to conclude that going long a low cost S&P 500 index fund like VOO (Vanguard 500 Index Fund) for the long term is a good bet. The S&P’s strength thus makes shorting the S&P 500 by 3x arguably the worst bet in the long term.
As always, anything can happen in the short term however, and SPXS could be a good bet in some time lines.
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Disclosure: the author does not own any security mentioned.