What Is an Inverse ETF?

Inverse ETFs can act like insurance for an investor's portfolio, but they're not recommended for everyone. Here's why.

gold bear on black keyboard key that says ETF
(Image credit: Getty Images)

You might have heard of the term "inverse ETFs" in recent years, but what is an inverse ETF and is it something you should consider? 

Exchange-traded funds (ETFs) have become one of the most popular products in asset management history – and for good reason. ETFs allow investors the ability to spread risk out over a basket of assets, and typically for very low costs.

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Will Ashworth
Contributing Writer, Kiplinger.com

Will has written professionally for investment and finance publications in both the U.S. and Canada since 2004. A native of Toronto, Canada, his sole objective is to help people become better and more informed investors. Fascinated by how companies make money, he's a keen student of business history. Married and now living in Halifax, Nova Scotia, he's also got an interest in equity and debt crowdfunding.