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ETF Education: The Problem With Inverse/Leveraged ETFs

FYI: ETFs let investors express a vast number of viewpoints—including if an investor expects prices to fall, or wants to magnify a return.

Leveraged ETFs allow investors to take a chance to enhance the risk they’re taking on a daily basis, says Todd Rosenbluth, director of ETF and mutual fund research for CFRA. These funds often are designed to have returns two or three times their benchmark on a daily basis. Meanwhile, inverse ETFs allow investors to easily short an index if they believe the price will fall.
Regards,
Ted
http://www.etf.com/sections/features-and-news/etf-education-problem-inverseleveraged-etfs
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