An Inverse ETF is a type of exchange-traded fund (ETF) that goes up when the price of the underlying asset goes down, and vice versa. Inverse ETFs are designed to track the opposite movement of an index or other benchmark in order to profit from declines in value, so they may be used as a hedge against potential losses or as a means of taking a short position on an existing long position.Inverse ETFs are one of the incredible tools that can be used by investors to manage their risk and protect themselves from a downturn in the stock or bond market. It's a type of mutual fund that is used to profit from the decline in value of an underlying benchmark.Inverse ETFs are designed to move in the opposite direction of a benchmark or underlying index. They can be used as a hedge against an investment that is expected to lose value or can be used to profit from an expected decline in value of a benchmark.