What Is a Leveraged ETF? Daily Reset, Decay, and Simple Examples
Hi, this is Kkoogongnam. A leveraged ETF is an exchange-traded fund designed to deliver a multiple—often 2x or 3x—of a benchmark’s return for one trading day. The words “one trading day” are the key. If the benchmark rises 1% today, a 2x fund aims to rise about 2% today. If the benchmark falls 1%, the … Read more