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 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.

Daily ETF Watch

ETF Watch: Not Much Vanilla In May Launches

So far in May, 20 new ETFs have come to market, and none of them are your plain-vanilla passive kind.

Features and News

SEC Sends Mixed Signals About Cutting Edge ETFs

Regulatory guidance has been murky about proposed bitcoin and 4x leveraged ETFs.

Daily Hot Reads

Friday Hot Reads: Controversial 4X ETF Hits Snag

Also, the best spots to find ETF bargains now.

ETF.com Analysis

Real-World ETF Questions

Money Show attendees are asking all the right questions about exchange-traded funds.

Daily Hot Reads

Monday Hot Reads: Why Bull Market Is Alive & Well For ETFs

Also, another look at the latest in the efforts to launch a bitcoin ETF.

ETF.com Analysis

Feds Back To Loving A Well Run Lottery

The SEC approval of 4X-geared exchange-traded products may be a change of heart toward ETFs.