Inverse fund
Inverse exchange-traded fund, short fund, short-selling fund is an index exchange-traded fund which fair price and thus estimated asset value changes in the opposite direction from the value of the index the fund is linked to. Thereby such ETF are managed as a hedging instrument for investors. The inverse dynamics in relation to the benchmark indices is conducted by modeling the index movement and using derivative financial instruments (futures, swaps, etc.), or, much less frequently, bets (shorts, or short positions) on the rise/fall of the index. The measure of excess of the fund's profitability relative to the benchmark index rate of return with the opposite sign is called the fund's leverage (most often, the leverage is two or three).
Try in 7-days Trial access
Free for company representative
- Get full online access to the database
- Use our powerful bond screener
- Track bond prices from 400+ sources
- Smart Portfolio Monitoring
- Evaluate advanced analytical tools
Sign up
Why Cbonds?
- 24 Years of Market Leadership
- Trusted by clients across 90 countries for decades of reliable service
- Used by Financial Professionals & Fintech central banks, asset managers, fintech innovators
- Convenient platform for private investors for informed investment decisions
Terms from the same category
Show more
Hide