Inverse ether ETFs are designed to move in the opposite direction of a benchmark. They can be used as part of a broader strategy to hedge against the risk of a market downturn, or to seek profit by expressing a view that a slice of the market will decline. In contrast to short-selling, which introduces the risk of uncapped downside, an investor who utilizes an inverse ETF can establish a “short” position that limits losses to the initial investment. In that respect, the risk of loss associated with an inverse ETF is no different than any other ETF or mutual fund.