Leveraged ETFs Can Deliver Fast Results. They Can Also Compound Losses Quickly.
2026-03-11 09:20:00 ET
Leveraged ETFs are viewed by some people as a way to magnify your gains quickly. They can do that if you play your cards right. They can also do the opposite (and quickly).
These products have grown in leaps and bounds over the past couple of years. ETFs and mutual funds providing 2x and 3x leverage by issuers, such as ProShares and Direxion, have been around for decades. More recently, funds offering leverage on single stocks have exploded both in number and assets under management (AUM).
That's what three straight years of double-digit gains for the S&P 500 (SNPINDEX: ^GSPC) will do. If investors are already in a bullish mood, perhaps they'll be tempted by the opportunity to enhance their returns even further.
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