What Is an Inverse ETF?
Inverse ETF (Inverse ETF), also known as short ETF or short ETF (Short ETF or Bear ETF), is the use of leveraged investment tools such as stock index futures, swap contracts, etc. to achieve daily tracking of the index index return inverse multiples (Such as -1 times, -2 times, and even -3 times) trading open-end index funds; when the target index returns change by 1%, the fund's net value changes reach the contract's -1%, -2%, or -3%.
Inverse ETF
Right!
- Chinese name
- Inverse ETF
- Foreign name
- Inverse ETF
- Also known as
- Empty ETF or bearish ETF
- By using
- Leveraged investment instruments such as stock index futures
- Achieve tracking
- A certain multiple of the daily target index return
- Belong to
- Trading open index funds
- Inverse ETF (Inverse ETF), also known as short ETF or short ETF (Short ETF or Bear ETF), is the use of leveraged investment tools such as stock index futures, swap contracts, etc. to achieve daily tracking of the index index return inverse multiples (Such as -1 times, -2 times, and even -3 times) trading open-end index funds; when the target index returns change by 1%, the fund's net value changes reach the contract's -1%, -2%, or -3%.
- Inverse ETFs generally pursue the investment result of the fund on each trading day before deducting fees to achieve a certain reverse of the daily price performance of the target index, such as -1.5 times, -2 times, or even -3 times, but usually do not pursue more than one transaction To achieve the above goals. This means that investment returns for more than one trading day will be the composite result of investment returns for each trading day, which will not be exactly the same as the return of the target index in the same period.
- versus
- In order to achieve investment objectives, fund managers usually use quantitative methods to invest to determine the type, quantity and composition of investment positions. Fund managers are not affected by their own market trends and security prices when investing, and maintain full investment at all times, regardless of market conditions and trends, and do not hold defensive positions when the market declines.