Tag: underlying index example

What The Leveraged Etf

What is a leveraged ETF? A leveraged ETF is an exchange-traded fund that uses financial derivatives and debt to amplify the returns of an underlying index. These funds are designed to provide investors with short-term investment opportunities that correspond to the performance of a specified index or sector. How do leveraged ETFs work? Leveraged ETFs […]

What Is An Inverse Etf

An inverse ETF, also known as a short ETF, is a security that moves inversely to the movement of its underlying index. This means that if the index falls, the inverse ETF will rise, and vice versa. Inverse ETFs are designed to provide investors with a tool to hedge their portfolios against a market downturn. […]

How To Play Leveraged Etf

A leveraged ETF is an exchange traded fund that uses financial derivatives and debt to amplify the returns of an underlying index. For example, a 2x leveraged ETF seeks to provide twice the return of the index it tracks. There are a few things you need to know before buying a leveraged ETF. First, be […]