The Best Leveraged Equities ETFs
The table below compares the performance and other essential indicators like dividend yield and expense ratio of 136 Leveraged Equities ETFs.
Leveraged equities ETFs are a type of exchange-traded fund (ETF) that use leverage to amplify returns on the underlying equity or stock index. They use borrowed capital to increase the potential return on investment. Leveraged ETFs aim to provide a multiple of the return of the underlying index, usually 2x or 3x, but this can vary. For example, a 2x leveraged ETF aims to provide twice the return of the underlying index, while a 3x leveraged ETF seeks to deliver three times the return of the underlying index.
Leveraged ETFs are known for providing higher returns and volatility than traditional ETFs that do not use leverage. As a result, they are typically used as a short-term investment strategy and unsuitable for long-term investments. It's also important to note that leverage can amplify losses as well as gains, so leveraged ETFs can be riskier than traditional ETFs. Additionally, the returns of leveraged ETFs are not expected to be the same as the multiple of the returns of the underlying index over the long term due to the compounding effect of daily returns.
Before investing in leveraged ETFs, it is crucial for investors to understand the risks and volatility associated with leverage and to have a clear investment strategy. Additionally, investors should also pay attention to the expense ratios, which tend to be higher for leveraged ETFs than for traditional ETFs.
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10-Year Annualized Return
Risk vs. Return Scatterplot