Why Leveraged ETFs are Dangerous
While leveraged and inverse Exchange Traded Funds [ETFs] have similarities to other non-leveraged ETFs, they are different in several vitally important ways. The most important distinction is the leveraged component, which means that these funds use debt and financial derivatives to amplify the fund’s returns.Amped-Up Funds
But, beyond the “Amped-Up” nature of these funds, leveraged ETFs generally reset on a daily basis, so they should not be held more than one day! Even if the underlying asset increases in value, a leveraged ETF may lose money depending on which futures or swaps were used. Leveraged ETFs are much more expensive to trade than non-leveraged ETFs so transaction costs may eat into your gains.
If you believe a broker or financial advisor recommended an unsuitable investment in leveraged ETFs for you, call securities fraud Attorney Howard M. Rosenfield, for a confidential free claim analysis. Call him at 800-637-3243 or send an email to firstname.lastname@example.org.
There are time limits that could apply to your claim, so call before you lose your rights!