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 fund seeks daily investment results, before fees and expenses, equal to 200% of the daily performance of Micron Technology, Inc. common stock. It is a non-diversified leveraged single-stock ETF intended for short-term tactical use.

NasdaqGM

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).

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

GraniteShares 2x Long DELL Daily ETF seeks daily investment results, before fees and expenses, equal to two times the daily percentage change of Dell Technologies Inc. common stock. The fund uses leveraged exposure and is designed for short-term trading rather than long-term holding periods.

DLLL

Direxion Daily S&P Biotech Bull 3X Shares (LABU) seeks daily investment results, before fees and expenses, equal to 300% of the performance of the S&P Biotechnology Select Industry Index.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
MUU	Direxion Daily MU Bull 2X Shares	18.17	—	—	98
MULL	GraniteShares 2x Long MU Daily ETF	16.98	—	—	98
INTW	GraniteShares 2x Long INTC Daily ETF	5.15	—	—	96
DLLL	GraniteShares 2x Long DELL Daily ETF	4.04	—	—	95
LABU	Direxion Daily S&P Biotech Bull 3x Shares	3.79	-0.27	-0.09	94

Top Leveraged Equities ETFs by Sharpe Ratio

Top Leveraged Equities ETFs by Sharpe Ratio