List of top performing 2x index stock etfs năm 2024
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An ETF is an investment fund that is traded on a stock exchange, similar to how shares are traded on a stock exchange. It is a portfolio of stocks usually tracking an index. ETFs are passive, aiming to replicate the performance of an index of a specific asset class. This means that if the index goes up then the ETF will go up, conversely if the index falls the ETF will also follow it down. Show
ETFs are usually focussed on one particular asset such as domestic Australian share, international shares, fixed income products, foreign currencies, property and infrastructure, precious metals and commodifies. Passive ETFs will follow the benchmark index up or down, replicating the performance of the benchmark as closely as possible. ETFs can be synthetic or physical. A physical ETF will hold the actual stocks – the underlying securities – from their chosen benchmark in the portfolio. The manager will adjust the portfolio weightings (how much of each stock is in the portfolio in comparison to the others) to align with the benchmark to replicate the performance of the actual benchmark as much as possible. Synthetic ETFs are different in that instead of owning the underlying securities, managers will use derivatives e.g. swaps to follow the performance of the index. As a result, Synthetic ETFs face counterparty risk although steps are taken to ensure it is minimised. Despite this, Synthetic ETFs tend to reward investors for taking on additional risk by charging lower costs. ETFs are often used to diversify a portfolio as they are an easy option to gain exposure in certain asset classes that may be more difficult to gain entry to e.g. international shares which would normally require the services of a specialised broker. ETFs usually have lower fees as passive investing strategies rely less on the skill and experience of the managers than active investing strategies. This makes them a cost effective way to diversify your portfolio and gain access to markets that traditionally tend to be more difficult to invest in. For investors willing to tolerate high risk in the hope of winning big on intra-day moves, leveraged ETFs use derivatives to amplify gains -- although the risk is that much bigger when stocks fall. They allow investors to make outsized bets on limited trading periods instead of being designed for a long-term buy and hold strategy. We divided them into double- and triple-leveraged S&P 500 ETFs and used an expense ratio to track the lowest fees as well as three-month daily volume to rank them in terms of liquidity. We excluded inverse ETFs. All numbers are as of Nov. 17, 2022. For twice-leveraged ETFs, the Direxion's leveraged ETF (SPUU) cost the least, while one from ProShares (SSO) had the highest liquidity. They ranked in reverse order for triple-leveraged ETFs. The high-risk, high-cost structure of leveraged ETFs makes them suitable for experienced investors who have above-average risk tolerance. Key Takeaways
Lowest Fees (Double-Leverage): Direxion Daily S&P 500 Bull 2× Shares (SPUU)
SPUU seeks daily investment returns, before fees and expenses, of 200% of the performance of the S&P 500 Index. Investors shouldn't expect this fund to provide two times the cumulative return of the S&P 500 for periods greater than a single day. Investors with a low tolerance for risk may want to consider other investments. SPUU holds shares of the iShares Core S&P 500 ETF (IVV) to track the S&P 500 and uses various swaps to obtain leveraged exposure to the index. ETFs with very low assets under management (AUM), less than $50 million, usually have lower liquidity than larger ETFs. This can result in higher trading costs which can negate some of your investment gains or increase your losses. Highest Liquidity (2x Leverage): ProShares Ultra S&P 500 (SSO)
SSO seeks daily investment returns, before fees and expenses, that are twice the daily performance of the S&P 500 Index. The fund’s leverage resets daily, resulting in compounding of returns when held for multiple periods. This ETF is designed for investors who can tolerate risk and a willingness to monitor their holdings on a daily basis. SSO holds shares of the companies that comprise the S&P 500 and uses various swaps to provide leveraged exposure to the index. Leveraged ETFs can be riskier investments than non-leveraged ETFs, given that they respond to daily movements in the underlying securities that they represent, and losses can be amplified during price declines. Furthermore, leveraged ETFs are designed to achieve their multiplier on one-day returns, but you shouldn't expect that they will do so on longer-term returns. For example, a 2× ETF may return 2% on a day when its benchmark rises 1%, but you shouldn’t expect it to return 20% in a year when its benchmark rises 10%. For more details, see this U.S. Securities and Exchange Commission (SEC) alert. Lowest Fees (3x Leverage): ProShares UltraPro S&P 500 (UPRO)
UPRO seeks daily investment returns, before fees and expenses, that are triple the return of the S&P 500 Index for a single day, as measured from one net asset value (NAV) calculation to the next. The fund’s leverage resets on a daily basis, which results in the compounding of returns when held for multiple periods. Holdings of this ETF should be monitored daily and used only by investors with a high tolerance for risk. UPRO holds shares of the companies that comprise the S&P 500 and uses various swaps to provide leveraged exposure to the index. Highest Liquidity (3x Leverage): Direxion Daily S&P 500 Bull 3x Shares (SPXL)
SPXL targets daily investment returns of 300% of those of the S&P 500 Index. Leverage for SPXL resets daily, so compounding of returns is a concern for investors holding the fund for longer than a single day. It is designed for sophisticated investors with a high risk tolerance. SPXL holds shares of companies in the S&P 500 Index and uses swaps to provide leveraged exposure. The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy. What ETF doubles the S&P 500?The Direxion Daily S&P 500® Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P 500® Index. Which index ETF has the highest return?100 Highest 5 Year ETF Returns. Which is better 3X or 2x leveraged ETF?Leveraged ETF prices tend to decay over time, and triple leverage will tend to decay at a faster rate than 2x leverage. As a result, they can tend toward zero. Is there a 5x ETF?The Leverage Shares 5x Long US Tech 100 ETP Securities is designed to provide 5x the daily return of Invesco QQQ Trust (QQQ) stock, adjusted to reflect the fees and costs of maintaining a leveraged position in the stock. |
