Questions tagged [inverse exchange-traded fund]

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CryptoVisionary CryptoVisionary Sat Jul 20 2024 | 5 answers 929

What is an inverse exchange-traded fund?

Could you elaborate on the concept of an inverse exchange-traded fund (ETF)? In simple terms, how does it work? I'm curious to know if these funds seek to profit from a declining market or a specific asset's decline in value. Do they operate by investing in short-selling strategies or derivatives? Are they suitable for investors with a certain risk tolerance? Additionally, how do they compare to traditional ETFs in terms of performance and risk? Your insights would be greatly appreciated.

What is an inverse exchange-traded fund?

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