Leveraged ETF Everything Investors Need to Know
4791 reads · Last updated: January 22, 2026
A leveraged exchange-traded fund (ETF) is a marketable security that uses financial derivatives and debt to amplify the returns of an underlying index. While a traditional exchange-traded fund typically tracks the securities in its underlying index on a one-to-one basis, a leveraged ETF may aim for a 2:1 or 3:1 ratio.Leveraged ETFs are available for most indexes, such as the Nasdaq 100 Index and the Dow Jones Industrial Average (DJIA).
