Apple (NASDAQ:AAPL | AAPL Price Prediction) trades at 36x earnings while delivering just 10% returns over the past year. If you’re skeptical that the 4t tech giant can continue this performance into 2026, the Direxion Daily AAPL Bear 1X Shares (NASDAQ:AAPD) is an inverse ETF that provides -1x daily exposure to Apple’s price movements.
But there are some things to consider first.
Apple’s Current Valuation Metrics
Apple’s valuation metrics show a forward P/E of 33x and a trailing P/E of 36x, these are premium multiples for a company that hasn’t had a blockbuster product in years. The company’s most recent fiscal year showed earnings growth following two years of near-stagnation.
Retail sentiment data from Reddit supports this ‘richly valued’ view, and our data shows bearish sentiment scores in the 32-38 range on r/wallstreetbets while r/stocks hovers around neutral.
How AAPD Works
AAPD provides -1x daily inverse exposure to Apple’s stock price through derivatives. The ETF carries a 0.01% expense ratio and holds $18.9 million in assets under management.
The ETF resets its exposure each day through daily rebalancing. Returns over periods longer than one day will deviate from a simple inverse of Apple’s performance due to compounding effects. Direxion’s daily fact sheet provides updated performance data showing how compounding affects returns.
The ETF’s asset base of $18.9 million affects liquidity characteristics. Daily volume and bid-ask spreads widen during Apple’s earnings announcements when volatility increases.
Note that while this can help you profit if Apple shares decline, it is not the type of ETF to own for long periods and perhaps confusingly will not create the inverse returns of Apple’s shares in the long run due to daily rebalancing.
But if you believe Apple’s best days are behind it and that shares will under-perform in 2026, it’s worth looking at.
Comparison to TSLQ
The Tradr 2X Short TSLA Daily ETF (NASDAQ:TSLQ) offers -2x leveraged inverse exposure to Tesla (NASDAQ:TSLA). TSLQ holds $315 million in assets under management, providing deeper liquidity than AAPD. TSLQ carries a 1.17% expense ratio and doubled leverage, which amplifies both gains and losses while accelerating compounding effects.
The products differ in leverage structure, liquidity profile, and cost. AAPD provides unleveraged -1x inverse exposure while TSLQ provides -2x leveraged inverse exposure.
Interest rates and equity risk premiums represent macro factors affecting inverse ETF performance, while Apple’s Services growth and iPhone pricing represent company-specific factors affecting AAPD’s underlying exposure.
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