Inverse ETFs are intended to move in the opposite direction of the underlying index being tracked, and as a result an inverse ETF will climb as the underlying index falls. It allows the trader or investor to thus benefit with gains from a long position on a downward move in the index being tracked, (without having to ‘short’). Some inverse ETFs may also be leveraged for 2x or 3x daily moves.
Inverse
Inverse ETFs are intended to move in the opposite direction of the underlying index being tracked, and as a result an inverse ETF will climb as the underlying index falls. It allows the trader or investor to thus benefit with gains from a long position on a downward move in the index being tracked, (without having to ‘short’). Some inverse ETFs may also be leveraged for 2x or 3x daily moves.