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How an inverse ETF work?

I know that theyre performance is the oposite of the index but how they do this (don't just say by short sales..more detail please)

Probably derivatives such as the futures market. They sell a futures contract on target index, since futures contract are highly leveraged it only takes a potion of the $'s to give the inverse of the target index. The remaining dollars are typically invested in US Treasuries which is why some of them have a relatively high dividend yield.

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