Short ETF: reverse ETF) is a trading open-end index fund that uses leveraged investment tools such as stock index futures and swap contracts to track the return of the target index a certain number of times a 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.

The reverse ETF usually pursues that the investment result of the fund on each trading day reaches a certain reverse multiple of the daily price performance of the target index before deducting expenses, such as-1.5 times, -2 times or even -3 times, but usually does not pursue more than one trading day to achieve the above goal.

This means that the return on investment in more than one trading day will be the comprehensive result of the return on investment in each trading day, which is different from the return on the target index in the same period.

In order to achieve the investment goal, fund managers usually use quantitative methods to invest to determine the type, quantity and composition of investment positions.

Fund managers are not influenced by their own views on market trends and securities prices when investing. Regardless of market trends and trends, they always maintain full investment and do not hold defensive positions when the market falls.

Reverse ETF does not invest in the target index portfolio. ETF fund network statistics mainly invest in: financial derivatives, including stock index futures, futures options, swap contracts, forward contracts and so on. Financial instruments such as margin financing and repurchase; Treasury bonds, bonds and money market instruments.

For assets other than financial derivatives, reverse ETF can invest them in government bonds, corporate bonds with high credit rating and money market instruments with maturity within one year, so as to improve fund income and offset expenses.

Baidu encyclopedia-reverse ETF