The Pros and Cons of Inverse ETFs
September 30, 2015 at 16:51 PM EDT
Inverse ETFs are funds that try to perform the opposite of an underlying index or sector. Investors with a buy-and-hold strategy can use these ETFs to hedge their position if they’re fearful of short-term market performance. Conversely, if an investor is wrong when trying to time the market, he or she could see the market rise while the inverse ETF falls.