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Leveraged Exchange-Traded Funds (ETFs)

A leveraged exchange-traded fund (ETF) uses financial debt to amplify the returns of an underlying stock. An investor can think of an ETF like a mutual fund that trades like a stock. Many investors are attracted to ETFs because of their low cost and the ability to actively trade them. Leveraged ETFs are generally available for most indexes like the S&P 500 and Nasdaq 100. A leveraged ETF does not amplify the annual returns of the index it tracks. For example, a leveraged ETF with 300% leverage will return 3% if the underlying index returns 1% by taking out debt to increase the investment.

Leveraged ETFs are generally used for short term trading. As the Securities Exchange Commission has warned: Most leveraged ETFs reset daily, meaning that they are designed to achieve their stated objectives on a daily basis. Their performance over long periods of time can differ significantly from the performance of their underlying index or benchmark.

Brokers should explain the risks of ETFs to investors before recommending them. Investors should recognize their risks and fully understand those risks before investing. If your broker recommended leveraged ETFs to you without explaining the risks, you should contact Gana Weinstein LLP.

Client Reviews
Thank you Adam and all your colleagues for the professionalism and diligence in the final settlement of our securities fraud case. When a past law firm group turned our case down, you and your firm took on the case and we thank you for the great outcome. We would highly recommend your firm. Gloria K.
I will never forget how much you helped me by winning my case! I never thought I would see any money from my investment. I admire the way you fight for everyday people against big companies. Thank you so much! Myra W.
Adam is an outstanding lawyer. I have worked on several cases with Adam and look forward to working with him again in the future. Rob D. - Co-Counsel.
If you want an attorney that is easy to talk to and genuinely cares about your legal situation, contact Adam Gana. He helped me settle a difficult contract dispute. When you work with Adam, he makes you feel as if you are his top priority. He will call you regularly to stay on top of the situation and submits all necessary legal documentation in a timely manner. His writing is excellent, his demeanor professional, and his work exceptional. Nancy N.
Adam helped me recover money from my broker when I thought all was lost. My house was about to be foreclosed, and I lost everything. Adam came in and saved my life. Jean C.