How Inverse Commodity ETFs Work

ETFs are designed to behave like an index or a group of securities. That means they move the way the index is moving. Inverse ETFs do pretty much the same thing but instead of a long position, they achieve a short position in those securities. That is the simplistic version of how ETFs work. Much of the inner workings of ETFs remain a mystery to investors, especially when it comes to inverse ETFs.
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