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 158 ETFs traded in the U.S. markets, Leveraged ETFs gather total assets under management of $36.65B. 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 $3.56B in assets. In the last trailing year, the best performing Leveraged ETF was the SOXL at 149.57%. The most-recent ETF launched in the Leveraged space was the Barclays ETN+ FI Enhanced Europe 50 ETN Series C FFEU in 03/15/18.


SOXLDirexion Daily Semiconductor Bull 3x Shares24.52%
MFLAiPath Long Enhanced MSCI EAFE Index ETN19.98%
FIEGDeutsche Bank FI Enhanced Global High Yield ETN19.87%
FNGUBMO REX MicroSectors FANG+ Index 3X Leveraged ETN17.38%
UBRTAxelaTrader 3x Long Brent Crude Oil ETN17.06%


EMLBiPath Long Enhanced MSCI Emerging Markets Index ETN-32.66%
NUGTDirexion Daily Gold Miners Index Bull 3x Shares-15.70%
AMJLCredit Suisse X-Links Monthly Pay 2xLeveraged Alerian MLP Index ETN-15.40%
MLPQETRACS 2xMonthly Leveraged Alerian MLP Infrastructure Index ETN Series B-14.25%
TVIXVelocityShares Daily 2x VIX Short-Term ETN-13.46%

top creations

UGAZVelocityShares 3X Long Natural Gas ETN438.49
NUGTDirexion Daily Gold Miners Index Bull 3x Shares320.23
SPXLDirexion Daily S&P 500 Bull 3x Shares145.74
JNUGDirexion Daily Junior Gold Miners Index Bull 3X Shares143.10
TNADirexion Daily Small Cap Bull 3x Shares119.10

top redemptions

UVXYProShares Ultra VIX Short-Term Futures ETF-254.44
UCOProShares Ultra Bloomberg Crude Oil-63.26
QLDProShares Ultra QQQ-30.40
FBGXUBS AG FI Enhanced Large Cap Growth ETN-29.19
RUSLDirexion Daily Russia Bull 3x Shares-21.00


UBRProShares Ultra MSCI Brazil Capped110.86%
SPUUDirexion Daily S&P 500 Bull 2x Shares72.27%
FNGUBMO REX MicroSectors FANG+ Index 3X Leveraged ETN43.12%
OILUProShares UltraPro 3x Crude Oil ETF38.08%
LBJDirexion Daily Latin America Bull 3X Shares36.16%


WTIUUBS ETRACS - ProShares Daily 3x Long Crude ETN-60.50%
UGEProShares Ultra Consumer Goods-30.48%
TYDDirexion Daily 7-10 Year Treasury Bull 3x Shares-25.14%
BDDDB Base Metals Double Long ETN-23.02%
TVIXVelocityShares Daily 2x VIX Short-Term ETN-22.96%

Daily ETF Watch

Barclays Adds To Fisher ETN Lineup

Two more bespoke products bring the total for Fisher-linked ETNs to nine.

Daily Hot Reads

Mon. Hot Reads: Behind Motley Fool’s High ETF Fee

Also, Stratfor’s 2Q macro forecast.

Daily Hot Reads

Tues. Hot Reads: 3 Vanguard ETFs Changing Benchmarks

Also, market implication of an Italian election.

Daily ETF Watch

Volatility ETFs Adjust Goals Post-Correction

ProShares and REX have both made some changes on certain VIX-related products.

Daily Hot Reads

Wednesday Hot Reads: Fed’s Chair Says Don’t Blame ETFs

Also, new communications sector an ‘unprecedented realignment.’

Daily ETF Watch

2018 Off To Roaring ETF Start

First two months have seen a plethora of launches.

Daily ETF Watch

ETF Week: Vanguard’s Active Factor Funds

Plus, new launches from Direxion and Horizons.

Daily ETF Watch

Direxion Debuts ETF Family

‘Lightly Leveraged’ funds are designed for long-term ownership rather than active trading.

Daily Hot Reads

Thursday Hot Reads: Are ETF Investors Confused?

Plus, Josh Brown says young investors should hope for another correction.