| Leveraged ETFs are exchange-traded funds that use debt and derivatives to amplify the daily gains of an underlying index. These vehicles are still subject to market pressures of buying and selling, and while they are designed to mimic the daily returns of the underlying asset, they don’t match the underlying asset exactly. Below we look at some of the commonly asserted dangers of investing in leveraged ETFs.
It has almost become common street knowledge that holding a leveraged ETF in a market with high volatility and a horizontal direction can destroy the share value...............................................Full Article: Source
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