Part 4

What about leveraged ETFs and crypto ETFs? Why do ETFs sometimes deviate from underlying assets?

Leveraged ETFs give investors a way to augment returns or insulate against the downside more cheaply in principle. However, you should NEVER assume that these correlations will be good. The nature of the derivatives instruments necessary to create a double or triple leveraged ETF will inherently create more risk than funds that mimic an asset on a one-to-one basis generally.

So, it is extra important to monitor the correlations here. The results are achieved using equity swaps, futures, reb...

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Beginner
What is an ETF?
6 Lessons
~14 mins in total
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