Inverse ETFs

 

Inverse ETFs were created in the 2010’s as a way to get the inverse return of a particular stock market, stock sector, industry group, etc. Before Inverse ETFs were created, there was no way for investors to go short in their IRA accounts which meant they had to watch the stock market go down and hope it didn’t get too bad. Now, with inverse ETFs, you can buy these stocks which go higher when the stock market goes down, offsetting some of your losses. Inverse ETFs finally give traders and investors a great vehicle to protect their capital in IRA accounts.

 

UltraShort ETFs

 

Trading leveraged and inverse ETFs can be a good way to increase returns, provided they are used as trading vehicles and not long-term investments. Maverick Trading’s Risk Officer, Corey Halliday, discusses the ins and outs of trading ultra-short ETFs and why they contain pitfalls for people holding them long-term.