What are the risks associated with Leveraged and Inverse ETFs?
In addition to the risks of traditional ETFs, most leveraged and inverse ETFs are designed to achieve their stated objectives on a daily basis. This can substantially impact an investors losses since their performance over longer periods of time can differ significantly from the performance (or inverse of the performance) of their underlying index or benchmark during the same period of time. In volatile markets, these losses could be magnified even further.