Hopefully, another flash crash or 1987-style market slide does not materialize, but Tuzun does note leveraged ETFs tracking financial services names and small-caps can see amplified volatility during periods of increased market stress. Popular leveraged ETFs tracking those groups include the ProShares UltraShort Financials (NYSEArca: SKF) and the Direxion Daily Small Cap Bear 3X Shares (NYSEArca: TZA).
Direxion Daily Small Cap Bear 3X Shares
ETF Trends editorial team contributed to this post.
Story updated to clarify information on volatility and long-term performance of leveraged ETFs.