Typically, the response to a market downturn is to wait for the red ink to subside, then to pick up the discount. However, there’s another way to play bearish cycles and that is to consider exchange-traded funds that profit on downcycles. Known as inverse ETFs, they’re exactly what they sound like: financial vehicles that allow retail investors a convenient way to short the market.

But why bother with inverse ETFs when you can either directly short trouble securities or buy put options? Regarding the former approach, a pure short position is risky because of the contractual obligation to return borrowed shares necessary to initiate such a trade. As for the latter, options trading can be complex, even for the most well-versed expert.

That’s why the ETF approach is so compelling. You buy units of ETFs just like buying individual shares of publicly traded companies. The one main risk factor to keep in mind is that exposure should be limited to no more than one trading session. Because of the daily compounding effect, holding inverse funds for a period of time can lead to value decay.

Still, if you’re bearish, inverse ETFs offer convenience and accessibility. Below are three ideas to consider.

Direxion Daily NVDA Bear 1X Shares (NVDD)

Although it remains one of the top-performing enterprises, tech juggernaut Nvidia (NASDAQ:NVDA) suffered badly in the recent market rout. Those who still believe that more downside is possible may consider the Direxion Daily NVDA Bear 1X Shares (NASDAQ:NVDD). The NVDD is one of the more recent inverse ETFs, with Direxion launching the product in September last year.

As the name suggests, this is a one-name ETF: it attempts to match the inverse performance of NVDA stock and that’s it. For those who are specifically bearish on Nvidia but not other tech players, the NVDD is almost like acquiring a put option. However, the benefit here is that unlike puts, the NVDD is unlikely to expire worthless.

Again, that doesn’t mean you should hold onto the inverse fund for longer than a day. Rather, it’s a more convenient way to short Nvidia. But why would anyone want to do that? Fundamentally, the race to offer processors that support artificial intelligence could become commoditized. Also, Nvidia’s top enterprise customers may start developing their own AI chips.

Direxion Daily Crypto Industry Bear 1X Shares (REKT)

One of the challenges associated with the cryptocurrency sector is that in prior paradigms, there was no easy way to short the market. However, with the introduction of inverse ETFs, this practice is now available to retail investors. Better yet, you don’t need to demonstrate advanced knowledge to participate, unlike options. Instead, you can acquire shares of the Direxion Daily Crypto Industry Bear 1X Shares (NYSEARCA:REKT).

Basically, as the cryptocurrency sector rises, REKT should move in the opposite direction. What makes this inverse fund so attractive is the wild volatility in the virtual currency ecosystem. When popular blockchain assets stumble, they tend to stumble hard. It’s not out of the question for cryptos to lose 20% of value in just a few days. Indeed, that already happened recently.

Further, cryptos benefit from extreme bullish sentiment, characterized by holding on for dear life or HODL-ing. Therefore, it’s not at all surprising to see cryptos bounce immediately higher. This often-violent seesawing effect allows speculators to trade REKT multiple times over a relatively short period of time.

ProShares Short QQQ (PSQ)

It takes a brave soul to short the mighty Nasdaq-100 index. However, if you feel you have what it takes to be a hero (or anti-hero as it were), you may consider ProShares Short QQQ (NYSEARCA:PSQ). As the name implies, this ProShares fund seeks daily investment results that correspond to the inverse of the daily performance of the Nasdaq.

To be sure, acquiring the PSQ is a risky endeavor. Yes, the Nasdaq-100 fell more than 8% in the trailing month. However, this index encompasses some of the most relevant and powerful innovators. At the same time, the technical performance of the underlying Invesco QQQ Trust (NASDAQ:QQQ) is weak. While QQQ managed to bounce off its 200-day moving average, it’s still well off its 50 DMA.

Plus, one must consider the fundamentals. Many tech enterprises – including the aforementioned Nvidia – appear overvalued on paper. If they can’t meet analysts’ expectations regarding earnings and sales, investors may abandon ship. That would be negative for the tech sector but a positive development for the PSQ. If you have nerves of steel, it could be one of the inverse ETFs to consider.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.