Investing
What is a leveraged ETF?
Quick Answer
A leveraged ETF uses derivatives (swaps, futures) to deliver 2x or 3x the daily return of an index. Daily resetting causes volatility decay — over months and years, leveraged ETFs typically underperform their target multiple.
Warren Team
Updated April 26, 2026
34
Warren Team
Updated April 26, 2026
34
Important Disclaimer:
The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.
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