What is a leveraged ETF?

Leveraged ETFs are intended for short-term, intraday trading, and positions are closed out at the end of each day; this means liquidity is of vital importance. Assets under management of at least $200 million. We omitted any funds with less than $200 million of net assets. Expense ratios below 1.25%.

What is an inverse leveraged ETF?

An inverse leveraged ETF aims to provide investors a multiple of the opposite of a benchmark’s performance through the use of derivative instruments like swaps and futures contracts. For example, a two times inverse leveraged ETF would provide double the opposite returns of its benchmark index.

Should you invest in a leveraged ETF?

Investing strategies that employ leverage can be complicated, making leveraged ETFs a better option for many investors. This class of exchange-traded funds aims to provide investors with a return of a specific multiple to an underlying asset class or benchmark. Take the S&P 500, for example.