Short ETF: reverse ETF) is a trading open index fund that uses leveraged investment tools such as stock index futures and swap contracts to track the return of the target index for a certain number of times every day (such as-1 time, -2 times or even -3 times). When the return of the target index changes by 1%, the change of the fund net value reaches-1%, -2% or -3% as agreed in the contract.

For example, when the market is predicted to fall, we borrow securities from brokers when the securities price is high and then sell them, and then buy back securities from the market and return them to brokers when the securities price is low to earn the difference. But if the market price rises instead of falling, it will cost more money to buy back the securities to be returned, resulting in losses.

If you want to short US stocks, it is the easiest way to directly short the Dow Jones index, Standard & Poor's 500 index, Dow Jones index and Russell 2000 index. If you are bearish on an index, investors can buy the short ETF of the index through the US stock trading account.