Nicolo
Tue Dec 03 2024
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6 answers
947
What is a 3X gold leveraged ETF?
A 3X gold Leveraged ETF is a type of exchange-traded fund that provides investors with a magnified exposure to the price movements of gold. Specifically, it uses financial derivatives and debt to amplify the returns of the underlying gold index by a factor of three. This means that if the price of gold increases by 1%, the ETF would theoretically increase by 3%, and vice versa for losses. However, it's important to note that leveraged ETFs can also magnify losses and may not be suitable for all investors due to their higher risk profile.
