Be careful with inverse ETFs especially if they are leveraged to move 2x or 3x in the opposite direction of the underlying index. They try to be inverse for ea

Be careful with inverse ETFs especially if they are leveraged to move 2x or 3x in the opposite direction of the underlying index. They try to be inverse for each single trading DAY so if the market moves back and forth you can take geometric losses. For instance, if you have 100 dollars in an inverse etf and the market goes up 10% your inverse etf will go down to 90 dollars. The next day the market drops 10% so you think "hey my inverse ETF will go up 10% so I'm back to where I started" Nope a 10% gain on 90 dollars puts you at 99 dollars. If the market moves sideways for a while your investment will continuously decline.