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.

With 156 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $25.92B. The average expense ratio is 1.15%. Leveraged ETFs can be found in the following asset classes:

  • Equity
  • Fixed Income
  • Currency
  • Commodities
  • Asset Allocation
  • Alternatives

The largest Leveraged ETF is the ProShares UltraPro QQQ TQQQ with $3.43B in assets. In the last trailing year, the best performing Leveraged ETF was the WTIU at 126.24%. The most-recent ETF launched in the Leveraged space was the Credit Suisse FI Enhanced Europe 50 ETN - May 11, 2028 FEUL in 05/11/18.

TOP ETF PERFORMERS

GUSHDirexion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares33.77%
UBRTAxelaTrader 3x Long Brent Crude Oil ETN32.40%
SOXLDirexion Daily Semiconductor Bull 3x Shares23.24%
DEURVelocityShares Daily 4x Long USD vs EUR ETN20.72%
USOUUnited States 3x Oil Fund19.51%

BOTTOM ETF PERFORMERS

TVIXVelocityShares Daily 2x VIX Short-Term ETN-33.65%
MEXXDirexion Daily MSCI Mexico Bull 3X Shares-32.03%
UVXYProShares Ultra VIX Short-Term Futures ETF-27.02%
BRZUDirexion Daily MSCI Brazil Bull 3X Shares-25.97%
LBJDirexion Daily Latin America Bull 3X Shares-25.90%

top creations

SOXLDirexion Daily Semiconductor Bull 3x Shares192.30
UVXYProShares Ultra VIX Short-Term Futures ETF139.63
TVIXVelocityShares Daily 2x VIX Short-Term ETN84.26
RUSLDirexion Daily Russia Bull 3x Shares52.17
FIHDUBS AG FI Enhanced Global High Yield ETN31.30

top redemptions

NUGTDirexion Daily Gold Miners Index Bull 3x Shares-180.05
UGAZVelocityShares 3X Long Natural Gas ETN-176.89
ERXDirexion Daily Energy Bull 3x Shares-87.43
JNUGDirexion Daily Junior Gold Miners Index Bull 3X Shares-83.03
TQQQProShares UltraPro QQQ-58.24

AUM WINNERS

OILUProShares UltraPro 3x Crude Oil ETF78.14%
UBTProShares Ultra 20+ Year Treasury44.85%
BRZUDirexion Daily MSCI Brazil Bull 3X Shares32.17%
SAAProShares Ultra SmallCap60030.93%
FEEUBarclays ETN+FI Enhanced Europe 50 ETN26.34%

AUM LOSERS

USTProShares Ultra 7-10 Year Treasury-65.45%
UBRProShares Ultra MSCI Brazil Capped-47.42%
LBJDirexion Daily Latin America Bull 3X Shares-32.77%
DRNDirexion Daily MSCI Real Estate Bull 3x Shares-31.67%
EETProShares Ultra MSCI Emerging Markets-22.78%

Weekly ETF Flows

2018 ETF Flows Top $100B

Year-to-date inflows cross the $100 billion mark for the first time.

Features and News

Top Performing Small Cap ETFs YTD

Small-cap ETFs handily outperforming their large-cap counterparts. 

Daily ETF Watch

Newcomer Debuts Unique High Beta ETF

Salt Financial rolls out a fund that seeks to mimic leverage, without leverage’s drawbacks.

Daily ETF Watch

ETF Week: New Bond Fund; Leveraged ETN Debuts

Plus, a look at filings from VanEck and Amplify ETFs.

Daily ETF Watch

Leveraged Europe Exposure In New ETN

Credit Suisse rolls out another product on behalf of Fisher Investments.

Features and News

Energy ETFs Heat Up As Oil Tops $70

The U.S. pulling out of the Iran nuclear deal was just the latest bullish catalyst for oil prices and energy ETFs.

Features and News

15 Most Actively Traded ETFs

Volatility is up and so are volumes.

ETF.com Live Chat!

Leveraged ETFs Here To Stay & Finding An Int’l Fund

ETF.com's Dave Nadig answers readers' ETF questions in real time. Here's the transcript.

Daily ETF Watch

ETF Week: 4 Funds Launch; Issuer Regroups

Plus, First Trust gives one of its ETFs a makeover.