Source: https://mochatrade.com/learn/glossary/inverse-etf

# Inverse ETF
URL: https://mochatrade.com/learn/glossary/inverse-etf
Last modified: 2026-10-17

An inverse ETF aims for the opposite of an index's daily move, so it rises when the index falls, and it resets daily like a leveraged ETF. It is a way to be short without [borrowing a share](https://mochatrade.com/learn/us-market-structure/who-moves-us-stocks); a [cash-settled contract](https://mochatrade.com/support/what-is-a-perpetual-contract-and-does-it-expire) also needs no borrow, and its funding shows how crowded the short is.

## Related terms

- Leveraged ETF: https://mochatrade.com/learn/glossary/leveraged-etf
- ETF creation and redemption: https://mochatrade.com/learn/glossary/etf-creation-and-redemption
- ADR (American Depositary Receipt): https://mochatrade.com/learn/glossary/adr
- US ETF: https://mochatrade.com/learn/glossary/us-etf
- Index rebalancing: https://mochatrade.com/learn/glossary/index-rebalancing
- Contract rollover: https://mochatrade.com/learn/glossary/contract-rollover