Cryptocurrency Q&A
What does 3x mean in ETF?
What does 3x mean in ETF?
Sofia
Wed Dec 25 2024
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5 answers
861
I'm trying to understand the meaning of '3x' in the context of ETFs. I've seen this term used and I want to know how it applies specifically to Exchange Traded Funds and what it signifies in terms of its function or performance.
5 answers
Leonardo
Fri Dec 27 2024
When an ETF is leveraged 3x, it aims to deliver three times the performance of the underlying index or benchmark it tracks.
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GeishaCharm
Fri Dec 27 2024
Leveraged ETFs are financial instruments designed to provide amplified returns.
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Bianca
Thu Dec 26 2024
For instance, if you invest in a 3x Leveraged S&P 500 index ETF, your returns will be multiplied by three.
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Bianca
Thu Dec 26 2024
This means that if the S&P 500 index rises by 1%, the ETF will return 3%.
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Valentina
Thu Dec 26 2024
Similarly, if the S&P 500 index falls by 1%, the ETF will lose 3%.
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