Bear Market, Volatility, and Trading Funds and ETFs
Morningstar's Trading categories also currently apply only to ETFs. The categories are as follows: Trading—Leveraged (Equity, Debt, or Commodity), Trading—Inverse (Equity, Debt, or Commodity), and Trading—Miscellaneous.
Funds in these categories track the leveraged or inverse return of an index, usually over a short-term (daily or monthly) compounding period. The compounding frequency can cause returns to diverge from the index over longer periods of time, which is why these funds are generally used for short-term trading.