01.14.19
Some Funds Win When Others Lose. But When the Others Win …
by: Brian J. O'Connor
The value of inverse exchange-traded funds (ETFs) moves in the opposite direction of their benchmarks, so when the stock market rises, they fall, and vice versa. In addition, some of these funds are leveraged, betting against their benchmarks by a factor of two or three to one. While these funds can offer impressive gains in times of market downturns, they are not designed for the average investor. For that reason, they won't be found in a typical 401(k). Instead, inverse ETFs are designed to function as a very short-term trading strategy for extremely knowledgeable investors.
Read the full article on New York Times