Betting Against Wall Street: The Inverse ETF Surge No One Is Talking About

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Todd Shriber, The Motley FoolSun, February 22, 2026 at 8:43 PM GMT+1 4 min readIt's been nearly two decades since the Global Financial Crisis sparked a wave of bank failures, casting a dark cloud over the financial services sector. Fortunately, things are different today. Broadly speaking, large U.S.-based banks are on solid footing.That doesn't mean bank stocks will behave like high-octane tech names, but the group is a value destination and an increasingly resurgent source of dividend growth. If there's a "dark side," it's that some investors have long memories. Many of today's market participants were invested during the crisis or old enough during that calamity to comprehend its gravity.Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »For risk-tolerant traders, this ETF is a great way of being bearish on financial stocks. Image source: Getty Images.So it's plausible that even to this day, some investors are skittish about the financial services sector. Some may even want to tempt fate and embrace an exchange-traded fund (ETF) such as the ProShares UltraShort Financials ETF (NYSEMKT: SKF). There are risks and potential rewards accompanying that strategy.From this fund's title, investors can infer that this is an inverse ETF, meaning it's a bearish bet on an underlying asset or index. In that case, that index is the S&P Financial Select Sector index, which comprises the financial services stocks in the S&P 500.Here's where things get interesting. This ProShares fund isn't just an inverse product; it's a leveraged ETF. It's designed to deliver -2x of the daily performance of the aforementioned financial services gauge. This is how that plays out in real, recent time. On Feb. 18, that index gained 0.85%, but the ProShares ETF slipped 1.69%. For better or worse, mostly the latter, the ETF behaved as expected on that day.Sure, this bearish financials ETF can be tempting, particularly for traders who have been watching The Big Short and Margin Call -- but there's a big "but." Actually, a couple of them. First, pinpointing when another bank stock bear market, let alone a crisis, will arrive is a near-impossible task. With that in mind, newer traders may be tempted to hold an inverse or geared ETF for weeks or months, but that strategy isn't suitable for most market participants. Don't just take my word for it. ProShares cautions investors that leveraged ETFs shouldn't be expected to deliver their stated daily objectives over periods of more than a single day. Condiciones y Política de privacidadPrivacy & Cookie SettingsMore InfoS&P 5006,909.51 +47.62 (+0.69%)Dow 3049,625.97 +230.77 (+0.47%)Nasdaq22,886.07 +203.37 (+0.90%)Russell 20002,663.78 -1.31 (-0.05%)VIX19.09 -1.14 (-5.64%)Gold5,080.90 +83.50 (+1.67%)Tickers destacadosBTC-USD Bitcoin USD 67,393.92 -1,093.23 (-1.60%)ETH-USD Ethereum USD 1,943.51 -44.54 (-2.24%)XRP-USD XRP USD 1.39 -0.06 (-3.91%)BTC-CAD Bitcoin CAD 92,181.41 -1,495.33 (-1.60%)SOL-USD Solana USD 83.26 -2.94 (-3.41%)Cartera de valoresInicia sesión para acceder a tu cartera de valoresIniciar sesiónPrincipales ganadoresRNG RingCentral, Inc. 39.50 +10.11 (+34.40%)LGN Legence Corp. 55.24 +7.96 (+16.84%)TLX Telix Pharmaceuticals Limited 7.69 +0.98 (+14.61%)SYRE Spyre Therapeutics, Inc. 43.21 +5.40 (+14.28%)FSM Fortuna Mining Corp. 12.27 +1.37 (+12.57%)Principales perdedoresFROG JFrog Ltd. 37.75 -12.54 (-24.94%)DNOW DNOW Inc. 13.23 -3.13 (-19.13%)CC The Chemours Company 17.04 -3.37 (-16.51%)AKAM Akamai Technologies, Inc. 94.17 -15.42 (-14.07%)RGC Regencell Bioscience Holdings Limited 29.17 -4.29 (-12.82%)Más activosNVDA NVIDIA Corporation 189.82 +1.92 (+1.02%)OPEN Opendoor Technologies Inc. 5.0000 +0.3500 (+7.53%)ONDS Ondas Inc. 10.03 -1.36 (-11.94%)INTC Intel Corporation 44.11 -0.51 (-1.14%)PLUG Plug Power Inc. 1.8700 -0.0400 (-2.09%)Principales eventos económicosEventos de beneficiosMis eventos de beneficiosEventos de beneficios