7 Best Leveraged ETFs for October 2024

Leveraged ETFs have the potential for high rewards, but they also carry high risk.

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.


The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Updated · 1 min read
Profile photo of Alana Benson
Written by Alana Benson
Lead Writer
Profile photo of Arielle O'Shea
Edited by Arielle O'Shea
Lead Assigning Editor
Fact Checked

Leveraged ETFs promise big rewards, but the risk may outweigh them. If you're looking to include leveraged ETFs in your investment portfolio, it's a good idea to approach them with caution.

Best-performing leveraged ETFs

Here are some of the best-performing leveraged equity ETFs. Note, as with any investment, those performing well today may not be performing well tomorrow.

Ticker

Company

Performance (Month)

YINN

Direxion Daily FTSE China Bull 3X Shares

118.62%

XPP

ProShares Ultra FTSE China 50 2x Shares

70.60%

URAA

Direxion Daily Uranium Industry Bull 2X Shares

42.64%

URAX

Defiance Daily Target 2x Long Uranium ETF

41.75%

BOIL

ProShares Ultra Bloomberg Natural Gas 2x Shares

38.97%

EVAV

Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares

35.09%

NVDU

Direxion Daily NVDA Bull 2X Shares

29.60%

Source: Finviz. Data is current as of Oct. 3, 2024, and is intended for informational purposes only, not for trading purposes.

Leveraged ETF definition

A leveraged ETF is an exchange-traded fund that tracks an existing index, but rather than match that index’s returns, it aims to increase them by two or three times.

» Looking for general ETF data? Check out a list of the best ETFs in terms of performance.

For example, say you had a traditional ETF that tracked the S&P 500 index. If the S&P 500 increased in value by 1%, your ETF would likely also increase by about 1% because it holds most of the same companies the index tracks.

But if you had a leveraged S&P 500 ETF, that 1% gain could be magnified and instead be a 2% or 3% gain. While that’s great if the market is going up, it’s not so great if the market is going down. If the S&P 500 lost 1%, you could lose 2% or 3%.

How do leveraged ETFs work?

So, how do leveraged ETFs achieve those impressive returns (or magnified losses)? Leveraged ETFs borrow money — typically from a bank or investment firm — and invest that money into contract investments, such as futures or options. These types of investments are highly speculative and can pay out big. But they can also lose big.

If the leveraged ETF you’re investing in is using a high-risk strategy, it’s possible that your losses could exceed the amount you invested.

By contrast, if you invest in a traditional ETF, you won’t lose more than the amount you invested — and losing that entire investment is relatively rare with traditional ETFs.

Leveraged ETFs are very risky and should be approached with caution.

Leveraged ETF expenses

Leveraged ETFs tend to have much more expensive fees than traditional ETFs. Leveraged ETF expense ratios can float around 0.95%. That’s a high price tag compared to most passive ETFs, which can have expense ratios as low as 0.10% or 0.20%.

Leveraged ETFs may also charge interest and transaction fees, which can reduce your overall return.

Learn more

Neither the author nor editor held positions in the aforementioned investments at the time of publication.
Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.

Get matched with a trusted financial advisor for free with NerdWallet Advisors Match.

    on NerdWallet Advisors Match

    AD