Cryptocurrency Q&A
What is a 2x ETF?
What is a 2x ETF?
Sofia
Fri Dec 06 2024
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6 answers
1526
I'm interested in learning about a specific type of ETF, namely the 2x ETF. Could you explain what it is and how it works?
6 answers
TopazRider
Sun Dec 08 2024
A Leveraged ETF is a financial instrument designed to amplify the returns of an underlying asset or sector.
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Tommaso
Sun Dec 08 2024
For instance, a 2x leveraged ETF aims to deliver returns that are double the movement of the underlying asset.
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CryptoAlly
Sun Dec 08 2024
This means if the asset increases by 5%, the ETF should theoretically increase by 10%.
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SsamziegangSerenadeMelody
Sat Dec 07 2024
Similarly, a 3x leveraged ETF is structured to provide returns that are triple the movement of the underlying asset.
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KimonoElegance
Sat Dec 07 2024
If the asset gains 4%, the ETF should gain 12% in theory.
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