Data Management

The Unseen Danger Of Leveraged ETFs

Date Added: Dec 2009
Format: HTML

Leveraged Exchange-Traded Funds, or LETFs, have become quite the popular product. As you probably know, LETFs are typically designed to give you twice the return of some market index, sort of like trading stocks on a 50% margin. You get twice the bang for your buck and twice the risk. LETFs are similar in risk to inverse funds, which allow an investor to bet against an index.