List of Leveraged Mutual Funds and ETFs
Last Updated by WikiWealth
Leveraged Fund Definition
Leveraged funds try to achieve returns that are more sensitive, by a specific magnitude, to market movements than non-leveraged fund. The returns for leveraged funds usually vary between two times (2x) and three times (3x) the movement in a given index or market sector. Therefore, the returns for leveraged funds can be two to three times greater than non-leverage funds, but losses can also be two to three times greater. For example: if the target index for the fund went up 1%, then a 2x (two times) leveraged fund would increase by 2%; the same is true on the downside.
Leveraged funds use a variety of financial instruments from equity swaps to derivatives, such as futures contracts, to achieve their returns. The use of exotic financial instruments and liquidity problems with some funds mean that trading cost and rebalancing fees could significantly hurt fund performance. Below is a summary of WikiWealth's leveraged ETF and mutual funds.
WikiWealth's research reports account for fund leverage by multiplying the potential of the fund by the leverage multiple. We make various other adjustments to the analysis to make our each fund research report as comprehensive as possible. Click on any link to see the fund report and analysis: