It should be noted that these funds try to reflect the daily movement of the underlying index, so it is ill advised to hold the funds over the long-term.

Leveraged and inverse ETFs are funds that aim to magnify the daily moves of the market. In a short double-leveraged fund, if the index goes up, then the fund goes down twice that amount. In a long leveraged fund, if the index goes up, the fund doubles that. The same principle applies when you’re talking about triple-leveraged ETFs, too. [Special Report: Leveraged and Inverse ETFs.]

For more information on Japan, visit our Japan category.

Max Chen contributed to this article.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.