When do "inverse" ETFs cover their shorts?

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Exchange-traded funds (ETFs) like TZA and RWM aim to deliver inverse results relative to specific stock indexes by employing strategies that include shorting stocks. However, these funds do not actually short stocks directly; instead, they utilize futures or swap contracts to achieve their objectives. The settlement of these contracts typically occurs at the end of each trading day. This approach is often criticized, as it can lead to poor long-term investment performance, making these ETFs less favorable for many investors.
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Exchange traded funds like TZA and RWM attempt to get results that are the "inverse" of certain stock indexes. I understand they do this by shorting stocks. When do they cover their shorts? -before the end of each trading day?
 
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Stephen Tashi said:
Exchange traded funds like TZA and RWM attempt to get results that are the "inverse" of certain stock indexes. I understand they do this by shorting stocks. When do they cover their shorts? -before the end of each trading day?
At the end of the day, and they actually do not sell anything short. They utilize futures or swap contracts and settle at the end of the day (which is a primary reason why they are such crappy investments)
 

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