Inverse ETFs: How to trade them. Inverse ETFs are essential if you have IRA accounts. SH, PSQ, QID

Inverse ETFs were created in the 2010's as a way to get the inverse return of a particular stock market, stock sector, industry group, etc. Before Inverse ETFs were created, there was no way for investors to go short in their IRA accounts which meant they had to watch the stock market go down and hope it didn't get too bad. Now, with inverse ETFs, you can buy these stocks which go higher when the stock market goes down, offsetting some of your losses. Inverse ETFs finally give traders and investors a great vehicle to protect their capital in IRA accounts.

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[edjfish]

Great topic! Thanks for making this easier to understand

[KyleBaran]

One thing I've been wondering about is that for leveraged/inverse ETFs which lose value over time, these often do a reverse split (the long-term chart shows this). For example with SQQQ, is it not possible to take a short position on the inverse ETF, but then hedge it (T/QQQ) or sell options waiting for the next inevitable reverse split?
I haven't run the numbers but I imagine that there would be huge swings up and down on the position, take a very long time, and probably only yield a 1-2% ROI, since this seems like an arbitrage strategy.