Guide

Leveraged ETFs

Leveraged ETFs promise daily multiples of an index — but daily rebalancing means the long-run result drifts from a simple 3x. The gap is the volatility decay, and it gets wider the choppier the market is. These pages explore how these funds actually work, where that decay comes from, what happens in a crash, and how rules-based rotation strategies have backtested against simply buying and holding. Educational only.