What is an inverse Exchange Traded Fund?
An inverse Exchange Traded Fund (ETF) is just like a regular ETF, except that it is designed to perform inversely to whatever index or basket of assets that it tracks. For example, an inverse ETF tracking the S&P 500 Index will rise in value when the S&P 500 falls, and fall in value when the S&P 500 rises. Owning this type of ETF is similar in principle to shorting a security, but is less risky and does not require the investor to maintain a margin account.
