How Inverse Commodity ETFs Work
October 02, 2015 at 18:14 PM EDT
ETFs are designed to behave like an index or a group of securities. That means they move the way the index is moving. Inverse ETFs do pretty much the same thing but instead of a long position, they achieve a short position in those securities. That is the simplistic version of how ETFs work. Much of the inner workings of ETFs remain a mystery to investors, especially when it comes to inverse ETFs.