With the

S&P 500

losing 16.8%, the Nasdaq 100 down 16.3% and the

Dow Jones Industrial Average

off 13.9% in October, all 10 of the best-performing exchange-traded funds in October were inverse funds.

The top ETFs with their one-month total returns for last month were:

PowerShares DB Crude Oil Double Short ETN

(DTO) - Get DB Crude Oil Double Short Exchange Traded Notes Report

at 66.6%,

PowerShares DB Base Metals Double Short ETN

(BOM) - Get DB Base Metals Double Short ETN Report

with 53.5%,

PowerShares DB Commodity Double Short ETN


at 51.4%,

ProShares UltraShort Real Estate

(SRS) - Get ProShares UltraShort Real Estate Report

with 50%,

ProShares UltraShort Russell2000 Growth


at 41.2%,

TheStreet Recommends

ProShares UltraShort Russell MidCap Growth


with 38.2%,

Rydex Inverse 2x S&P MidCap 400 ETF


at 37.4%,

ProShares UltraShort Industrials

(SIJ) - Get ProShares UltraShort Industrials Report

with 36.7%,

ProShares UltraShort MidCap400

(MZZ) - Get ProShares UltraShort MidCap400 Report

at 36.5%, and

Rydex Inverse 2x Russell 2000 ETF


with 36.4%.

Five of the funds have been trading for at least a year, the minimum duration necessary to qualify for a rating by our risk-adjusted return ranking system. The ProShares UltraShort Real Estate ETF returned 33% over the past year, earning a C- rating. At 84.2% for the same period, the ProShares UltraShort MidCap400 ranked on the high side of average at C+.

ProShares UltraShort Russell2000 Growth scored a rating of A, returning 92% for the year ending Oct. 31. This excellent performance was trumped by the 106.6% gain from ProShares UltraShort Industrials and 124.1% increase from ProShares UltraShort Russell MidCap Growth. Both of those ETFs topped out with A+ ratings.

Source: TheStreet.com Ratings.



for an explanation of our ratings.

Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.