Is leveraged ETF useful?11 Aug 2010
This investment use some derivatives to get high return such as option, swap, and others. This ETF does not use long or short to achievement investment goal like other ETF does. For ordinary people like us, it is difficult to use derivatives tool.
By using some derivatives, they have to pay other transaction fee. Certainly, It eat your investment return. Some leveraged index may produce negative index when the index it tracks moved up. You should be careful with this investment especially the beginner. This investment is very high risk. You can put small portion money at this investment if you like it.