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.

Leveraged Equities

The GraniteShares 2x Long MU Daily ETF seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of Micron Technology Inc.'s common stock (NASDAQ: MU).

NasdaqGM

MULL

The GraniteShares 2x Long INTC Daily ETF seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of Intel Corporation's common stock. The fund achieves this by entering into financial instruments such as swaps and options on Intel's stock, aiming to provide leveraged exposure to Intel's daily stock performance.

INTW

The Direxion Daily Semiconductor Bull 3X ETF (SOXL) seeks daily investment results, before fees and expenses, equal to 3x the daily performance of the ICE Semiconductor Index, an index of the largest U.S.-listed semiconductor companies. The fund is designed for short-term tactical use to amplify exposure to the semiconductor sector and is not intended as a long-term holding due to daily reset and compounding effects.

NYSEArca

SOXL

Direxion Daily MSCI South Korea Bull 3X Shares seeks daily investment results equal to 300% of the performance of the MSCI Korea 25/50 Index before fees and expenses.

KORU

The fund invests at least 80% of its net assets in AMD securities and financial instruments to provide 2X daily leveraged exposure to AMD, aligned with its investment objective.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
MULL	GraniteShares 2x Long MU Daily ETF	26.04	—	—	98
INTW	GraniteShares 2x Long INTC Daily ETF	10.86	—	—	98
SOXL	Direxion Daily Semiconductor Bull 3X ETF	6.48	0.37	0.64	95
KORU	Direxion Daily MSCI South Korea Bull 3X Shares	5.68	0.13	0.18	95
AMUU	Direxion Daily AMD Bull 2X Shares	5.07	—	—	94

Top Leveraged Equities ETFs by Sharpe Ratio

Top Leveraged Equities ETFs by Sharpe Ratio