We agree with Comeau. Leveraged ETFs are excellent tools if properly implemented into a portfolio. But in order to properly use them, investors need to become more educated and know exactly how they work. The providers of these ETFs have been fully transparent with investors and have provided pages upon pages of literature to illustrate how these ETFs work and the risks involved with them. In our view, no one is trying to hide anything here.
We’re curious about what our readers think, though. Have you taken our poll about leveraged an inverse ETFs yet? If not, please do so – it’s just one easy question! We’ll publish the results soon.
For more stories on leveraged ETFs, visit our leveraged ETF category.
Kevin Grewal contributed to this article.