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What kind of securities might comprise a typical inverse exchange-traded fund (ETF)?

What kind of securities might comprise a typical inverse exchange-traded fund (ETF)?

ETFs, Starting Out
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March 2018

Inverse ETFs would contain derivatives that aim to perform opposite the market. It is basically an index ETF that increases in value when the correlating index falls. For example, the Short DOW 30 ETF (DOG) increases when the DJIA index falls. These types of ETFs might contain futures, swaps, options, etc. 

The primary risk of these ETFs other than positive market performance is illiquidity. Very few people hold these securities, and when they do it is typically for a short period of time.

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