The Direxion ETF EDZ offers greater leverage at -300% of the MSCI Emerging Markets Index. EDZ is up 38.8% year-to-date.
In comparison, the MSCI Emerging Markets Index is down 7.6% year-to-date.
Due to the daily rebalancing and compounding effects over time, the leveraged funds may not perfectly reflect their -1x, -2x or -3x strategies over a long period. Investors have typically used geared funds as a short-term hedges or as speculative plays.
Direxion’s Top Five Leveraged ETFs in January
Chart Courtesy: Direxion
For more information developing economies, visit our emerging markets category.