Earn 8% and (Potentially) 3x the S&P's Return This Year, but There Is a Catch

Core Insights - Financial stocks can lead to significant gains when leveraged ETFs are utilized, particularly those with 3x leverage [1] - Conversely, when financial stocks decline, the losses incurred by leveraged ETFs can also escalate rapidly [1] Group 1 - The performance of financial stocks directly impacts the returns of leveraged ETFs, highlighting the volatility associated with these investment vehicles [1] - Leveraged ETFs are designed to amplify the performance of their underlying assets, which can result in outsized gains during market rallies [1] - The compounding effect of losses in leveraged ETFs can be detrimental during downturns, emphasizing the risks involved in such investments [1]