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What Is a Leveraged ETF?
A leveraged ETF (exchanged-traded fund) is like most ETFs in that it trades like a stock and is designed to track the performance of a particular index.
However, a leveraged ETF uses financial derivatives and debt to increase returns. It also doesn't track the returns of an index on an annual basis, but the daily changes.
A leveraged ETF (exchanged-traded fund) is like most ETFs in that it trades like a stock and is designed to track the performance of a particular index.
However, a leveraged ETF uses financial derivatives and debt to increase returns. It also doesn't track the returns of an index on an annual basis, but the daily changes.