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The Young Investors Podcast
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The Daily Re Balancing of Inverse ETFs
The inverse e t f is not a regular exchange trade of funds at all. They're actually constructed using derivatives to make sure that they achieve the exact opposite of something, times two or times three. The daily re balancing means that if you hold these inverse ts for a long period of time, like a few years, you will pretty much always under perform a and that under ormance is because of the daily re balancing. And it's likei it's like a leveraged inverse of whateveris like three times the inverse of what tesle doesitso, my gosh, tesle's got up ten % in a day, and now i'm down for 30 %
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