“These should be used by experienced investors to profit from short-term market moves generally made within a day,” Miller added.
Investors should know that inverse and leveraged ETFs typically generate a daily targeted performance as they rebalance daily. As such, these funds will not perfectly reflect the -100% or -200% performance over a long period.
“It can feel good to make money when the market is going down,” Matthew Tuttle, president of Tuttle Wealth Management LLC, said in the article. “But these ETFs are meant to be short-term trades.”
For more information on inverse ETFs, visit our inverse ETFs category.
Max Chen contributed to this article.