The Clap ETF investors are looking to hedge risks from market decline by looking at ETFs with an inverse strategy.
The Deets With the Fed expected to continue to hike interest rates to tame inflation, stocks continued to decline as fears of an economic recession linger in the minds of investors.
The market is far from stable as economic conditions are showing no signs of improving. For that reason, investors are beginning to look at ETFs with an inverse relation to the market.
Inverse ETFs Inverse ETFs are securities that tend to react inversely to their target asset. This means that if the asset declines, the ETF will increase (inverse effect) and vice versa.
Why this Matters Investing during times of economic pressure can be tricky. Many economic factors influence the value of securities and assets and so investors must look to hedge their investments. One way of doing so is through inverse ETFs.