For the brave of heart, leveraged funds could bring some hefty returns. Four of the top five U.S. ETF performers this year are leveraged funds. The best-performing fund this year, Direxion Daily Junior Gold Miners Index Bull 3x Shares, has rallied 920 percent this year through Thursday.
Some exchange-traded fund analysts remain cautious.
“The level of risk that the leveraged funds have is too much for some of the traditional ETF investors to put up with,” Todd Rosenbluth, a New York-based director of ETF research at S&P Global Market Intelligence, said by phone last week. “Leveraged funds are for some highly sophisticated traders, but even so the risk is too high you can lose all you got.”
This article was provided by Bloomberg News.