Betting on red: Stake users shorting US stocks

Stake boss Matt Leibowitz says the trade is not for everyone but retail investors should have access if they want it. (Photo: Supplied)

Dan Brunskill

Thu, 07 Oct 2021

Kiwi users of investment platform Stake have traded more than $16.5 million into inverse ETFs since August, as they bet the US share market is due a correction.An inverse ETF is an exchange traded fund constructed using derivatives to profit from a decline in an underlying benchmark, such as the Nasdaq Composite.Investing in an inverse ETF is like shorting stocks but gives investors a way to do so without requiring a margin account.Some of the most popular inverted funds on Stake were UVXY – which profits from volatility on the...

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