Leveraged ETFs

Most ETFs are designed for long term success. Let’s meet a different type.

By grouping a bunch of stocks, ETFs diversify instantly ⚡

But, spreading out investments too much can lower returns in the short term 🤔

Leveraged ETFs (LEFTs) exist to solve this 💡

Instead of copying the profit of an index, Leveraged ETFs seek to multiply it! ✨

How? Leveraged ETFs borrow money to match other faster-pace investments 🏎️

The multiple can vary, but strives to be 2x or 3x the return of the normal index 🤑

So, if the S&P 500 makes $100, a Leveraged ETF would hope to make $200! 🏦

But, Leveraged ETFs don’t always get it right 🤕

So, they can be risky and are often used for day trading ❌

Since the money is borrowed, these ETFs are extra dangerous 😱

Leveraged ETFs are not supposed to be held past 1 trading day 🗓️

We’re introducing you to Leveraged ETFs, so you are better prepared in the future, if you ever decide to add them to your portfolio 🧠

Carefully consider your risk tolerance before trading a Leveraged ETF 🦺

And never invest more than you can afford to lose! 🛟

Test your knowledge

What is a Leveraged ETF?

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How risky are Leveraged ETFs?

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If the S&P 500 makes $100, a 2x Leveraged ETF would hope to make. . .

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What's next?

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