Direxion ETF University

 


Understanding Leveraged and Inverse ETFs

Leveraged and inverse ETFs are powerful investment vehicles for investors who are looking to gain short-term magnified or inverse exposure to the markets. However, it's important to clearly understand that their unique characteristics come with inherent risk.

This course is designed to provide you with a comprehensive understanding of the composition of leveraged and inverse ETFs, the mechanics of how they operate, and the risks associated with them.  This learning module is self-paced and can be completed in one sitting (35 – 60 minutes depending on your existing knowledge), or in multiple sessions if you prefer. All work will be saved as you advance through each screen and if you choose to return, you will have the option of picking up where you left off, or restarting from the beginning.

Take the time to enhance your knowledge of leveraged and inverse ETFs to ensure you are familiar with their unique characteristics and risks, and to ensure that you are well-suited to use them as part of your overall investment plan.

The course is divided into three sections covering the following topics:

  • The composition and mechanics of leveraged and inverse ETFs
  • How leverage magnifies returns as well as risks
  • The risks related to compounded returns and changing market exposure
  • The impact on intraday volatility

 


Understanding Leveraged and Inverse ETFs

Leveraged and inverse ETFs are powerful investment vehicles for investors who are looking to gain short-term magnified or inverse exposure to the markets. However, it's important to clearly understand that their unique characteristics come with inherent risk.

This course is designed to provide you with a comprehensive understanding of the composition of leveraged and inverse ETFs, the mechanics of how they operate, and the risks associated with them.  This learning module is self-paced and can be completed in one sitting (35 – 60 minutes depending on your existing knowledge), or in multiple sessions if you prefer. All work will be saved as you advance through each screen and if you choose to return, you will have the option of picking up where you left off, or restarting from the beginning.

Take the time to enhance your knowledge of leveraged and inverse ETFs to ensure you are familiar with their unique characteristics and risks, and to ensure that you are well-suited to use them as part of your overall investment plan.

The course is divided into three sections covering the following topics:

  • The composition and mechanics of leveraged and inverse ETFs
  • How leverage magnifies returns as well as risks
  • The risks related to compounded returns and changing market exposure
  • The impact on intraday volatility
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