According to the definition provided by Investopedia, “Leveraged ETFs are typically used by traders who wish to speculate on an index, or to take advantage of the index’s short-term momentum. Due to the high-risk, high-cost structure of leveraged ETFs, they are rarely used as long-term investments. In many cases, traders hold positions in leveraged ETFs for just a few days or less.”
For more investment strategies, visit the Leveraged Inverse Channel.
