Been looking at the financial sector lately and honestly, the picture isn't pretty. Banks are getting hammered right now, and if you're bearish on this space, there are actually some solid ways to play it using ETFs.

So what's going on? The yield curve is basically flattening - Treasury yields keep dropping and that gap between short-term and long-term rates is narrowing more than it has in years. For banks, this is brutal because it squeezes their net interest margins. Add in the energy sector collapse and you've got banks sitting on massive loan loss provisions. It's the perfect storm, and a lot of money has been flowing out of financial sector funds.

If you want to short financial stocks right now, the good news is there are several ETF options to do it. Let me break down the main ones worth considering.

First, there's the unleveraged approach. ProShares Short Financials (SEF) gives you straight inverse exposure to the Dow Jones U.S. Financials Index - basically, it goes up when financial stocks go down. Simple, no leverage, good for hedging. Then you've got ProShares Short S&P Regional Banking (KRS) if you want to focus specifically on regional banks, which have been hit particularly hard.

If you want more aggressive short financial bets, the leveraged options are where it gets interesting. ProShares UltraShort Financials (SKF) gives you 2x inverse exposure, so you're amplifying the downside move. For the really aggressive traders, there's ProShares UltraPro Short Financial Select Sector (FINZ) with 3x leverage - this thing moves fast. Direxion also has FAZ, which is the 3x inverse play on the Russell 1000 Financial Services Index and actually has decent volume.

Similarly, if you're focused on regional banks specifically, Direxion Daily Regional Banks Bear 3x Shares (WDRW) gives you that 3x leverage on regional bank weakness.

Here's the thing though - these leveraged products are meant for short-term trading only. They rebalance daily, so holding them long-term will mess with your returns. But if you're looking to short financial stocks over the next few weeks or months while this sector weakness plays out, any of these could work depending on your risk tolerance and time horizon.

Personally, I think the financial sector is facing real headwinds right now. If you believe rates stay low and the energy problems persist, shorting financials through one of these ETFs might actually make sense as a tactical trade. Just know what you're getting into - this isn't a long-term hold strategy.