Leveraged ETF Overview

Leveraged ETFs are powerful and complex trading instruments that allow traders to magnify the return on investment. While higher returns are an attractive proposition, investors need to realize that losses are magnified too. Thus, these ETFs need to be handled with care.

Leveraged ETFs deliver the desired returns over prespecified periods only (usually one day). A leveraged ETF that offers 2x exposure to the S&P 500 only attempts to do so over one-day holding periods. Investors looking to hold these ETFs for significantly longer time periods can often find themselves losing money even if the underlying benchmark behaved as expected.

Daily ETF Watch

3X Emerging Market Bond ETF Debuts

Direxion trots out a leveraged ETF that offers 3X exposure to the emerging market space.

Daily ETF Watch

ETF Watch: 13 ProShares Funds To Close

The ETFs have been trading for years and have not gathered significant assets.

ETF.com Analysis

A Response To Jim Cramer’s ‘Why I’m Against ETFs’

CNBC’s Mad Monday host misconstrues some ETFs benefits as liabilities.

Features and News

What ETFs Really Cost

The expense ratio only reflects part of what it costs to buy, sell and hold an ETF.

Daily ETF Watch

ETF Watch: iShares Rolls Out Ex-China Fund

New fund removes China from its emerging market exposure.

Daily Hot Reads

Monday Hot Reads: These Energy ETFs Need A Tow

Also, despite record ETF inflows, BlackRock isn't seeing accompanying revenue gains.

Daily Hot Reads

Monday Hot Reads: Midyear ETF Market

A look at some interesting performance charts, plus more evidence that fund performance is mostly luck.

ETF Strategist Corner

We Are All Insurers Now

Exchange-traded products have made risk protection available to all. 

Index Investor Corner

Swedroe: Complexity In Funds Will Cost You

The use of leverage, options and short sales can be a drag on returns.