Edit: thanks for replies. I think I understand better now, the concept of "decay" (due to volatility, rebalancing etc) and how an inverse ETF can go down even when the stock it's tracking also goes down.
New question: let's say I'm willing to make a "bet" that TSLA goes down in the next 6-12mo... what is the simplest way for me to make that bet? Do I really have to get into margin accts and short selling? Basically I'd like to "mirror" TSLA for next 12mo. Is there a simple way to do that or not really?
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I'm new to inverse ETFs and have a small position in TSLQ. I do know that several 'warnings' say that these style investments are meant for intraday, but since it is an ETF I don't understand the risk of holding for weeks or months. (apart from the obvious, if the tracking stock goes up) So here's my question, if the hypothesis comes true (that TSLA goes down over next 6mo) what is the risk to just hold TSLQ ETF for that period?
Another way to ask, is there something else going on with the 'tracking' where over longer periods of time the ETF won't track to certain kinds of losses (eg; during after hours or something else...)? Is it possible that TSLA goes down over a period of time but somehow TSLQ doesn't gain?
Sorry if this is remedial or breaks any rules please let me know... I'm genuinely confused after reading different things about inverse ETF risks.