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FC MARKETS

Markets, money and the economy, explained for American investors

Topic

Compounding

1 article

ETFs & Funds

Leveraged and Inverse ETFs Explained: Daily Resets, Decay and Risks

Leveraged and inverse ETFs promise two or three times an index's daily move, or its opposite, but the daily reset means results over weeks or months can differ sharply from what investors expect. How these funds work, why volatility erodes returns, and who regulators say they are designed for.

6 min read