Leveraged ETF
A leveraged exchange-traded fund (LETF) is an exchange-traded fund (ETF) that seeks to magnify the daily returns of a specified underlying index or benchmark by a fixed multiple, typically 2x or 3x, through the use of derivatives and leverage.
Example: If the index gains 1% in a day, a 2x long LETF tracking that index might rise about 2% before fees, while a 2x inverse LETF could fall about 2%.
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