Introduction to Leveraged ETFs
Leveraged ETFs are exchange-traded funds that use financial derivatives and debt to amplify the returns of an underlying index. These investment vehicles are designed to deliver multiples (e.g., 2x or 3x) of the daily performance of their tracking index.
Who this site is for
Chances are you are here because you want to learn more about leveraged ETFs and you are already familiar with regular ETFs. If that is not the case, we recommend that you educate yourself about regular ETFs first as leveraged ETFs are a much more volatile and risky product.
If you are already familiar with regular ETFs, especially index investing, this site is for you.
Recommended Steps
If you have never heard of leveraged ETFs before, we recomment simply play around a bit with the Regular Backtest to get a feel for how the influence returns. Once you've seen how leverage impacts actual returns, you should dive into the theory and try to understand why leveraged ETFs can be a great investment.
A Note On Psychology
As you discover and use this site, you will realise that leveraged ETFs can outperform regular ETFs immensely. But these returns come at a cost that goes beyond money. The increased volatility and amplified trends are incredibly hard to withstand mentally if you aren't prepared. Most investors lose their cool during bear markets and you have to prepare yourself by equippuing yourself with knowlege in order to survive and profit. Luckily this website is offering everything you need. If anything is missing for you to make an informed investment decision, please let us know.