How the Inverse exchange traded fund (ETF) work?

This ETF replicate the dayly inverse rentability of an index. So, if the DowJones Industrial Average index (DJIA) goes down 1% this etf goes up 1%.

I know this can be done by using financial derivatives (specially swaps agreetments) so my questions is more about how a swap works so it can create an inverse etf?

There are several inverse funds. I'll use one example. QID. If you buy the QID, you're profiting as the package of stocks within the QID move to a negative value. But you're doing so at twice the rate. So, if the market basket of company stocks in the QID are down 1%, then QID is up 2%.

With the DOG, it is a 1 to 1 relationship and more broad. As the DOW goes down 1%, the DOG goes up 1%. They are simply taking the opposite side of the trade.

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