Leveraged ETF
A fund engineered to deliver a multiple (2x, 3x) of its index's daily return. The daily reset means long-run returns diverge from the multiple — compounding helps in smooth trends and hurts in choppy markets (volatility drag). They are trading instruments, not holdings, and the favorite habitat of short-horizon systematic strategies.
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Related terms
LeverageControlling more exposure than your capital: through margin borrowing …Volatility DragThe gap between an asset's average return and its compound return, cau…Inverse ETFA fund that delivers the opposite of its index's daily return (−1x, −2…
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.