7 Risks of Trading Leveraged ETFs and How to Avoid Them

Exchange-traded funds have found their way into countless portfolios, as investors of all types have embraced their cost-efficient, diversified exposure to virtually every corner of the global market. Given their liquidity and access, active traders have increasingly expanded their playbook to include ETFs, which are accounting for a greater share of trades. Leveraged ETFs have become especially popular within these groups, but can be dangerous for the inexperienced.