Leveraged ETFs Are Designed to Be Aggressive and Speculative. That's Both the Appeal and the Risk.
2026-03-03 07:50:00 ET
Some people may look at leveraged ETFs and think that they're the perfect way to amplify long-term returns. After all, if you see the S&P 500 rising on average by 10% per year, why not put your money in the Direxion Daily S&P 500 Bull 3x Shares ETF (NYSEMKT: SPXL) and turn it into 30% per year?
Since that's not how they work, and if you buy and hold these leveraged ETFs with that intention, the odds are good that you could do serious unintended damage to your portfolio .
Leveraged ETFs are designed to magnify a single day's return, nothing more. As I'll demonstrate in a moment, if you hold them for any longer than that, you can experience a wide range of returns. In many cases, that won't be a good thing.
NASDAQ: SPXL
SPXL Trading
4.09% G/L:
$214.095 Last:
2,243,588 Volume:
$210.94 Open:
