72. Leveraged ETFs – exchange traded funds (ETFs) consist of a basket of stocks, not unlike a mutual fund, but in a more liquid form and often at a lower cost.
With leveraged ETFs, an investor can take advantage of leverage to amplify returns if they underlying stocks appreciate.
If someone is extremely confident that a particular industry or the market as a whole will go up, the extra leverage allows them to magnify their upside potential. The downside is that they could suffer a loss that is double or triple what they would have lost with a regular, unleveraged ETF.