Today, the Wall Street Journal's Wealth Management section takes on inverse and leveraged ETFs, explaining what they are and how they work.

The only fund the WSJ mentions as an example of this type of strategy is the ProShares UltraShort S&P 500 fund.

The story does provide a thorough explanation of inverse ETFs, aimed at the average investor. It explains that leveraged ETFs are for short-term, usually daily trading, that they invest in exotic instruments called "swaps," that there are a host of risks to consider before taking the plunge, and so on. It's a fine article to email to a cousin who's sure the market's going to tank any day now.  

Edited by: Chris Cumming


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