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Managed Futures

The Hidden Risks of Leveraged Single-Stock ETFs

alphaarchitect

5 months ago

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Levered ETFs may appeal to those who wish to hedge other positions, those with strong directional views, or those with so-called “lottery preferences.” – Hendrik Bessembinder

The Explosive Growth of a Risky Product

Leveraged single-stock Exchange-Traded Funds (LSS-ETFs) have captured investors’ attention with a seductive promise: amplified exposure to popular stocks without the complexity of margin trading. The first levered single stock ETFs (LSS-ETFs) were introduced in July 2022. By lat...

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