While the prospect of doubling or tripling the returns of a benchmark index like the S&P 500 is tantalizing, investors should understand the finer points of leveraged ETFs before they take the plunge. Here are some key takeaways for average investors.For more guidance on ETF investing, check out the full guide at this link .SSO, in contrast, delivers 2x daily S&P 500 exposure, resulting in a broader sector mix—technology (31%), a large allocation to cash and others (30%), and financial services (9%). Its to ...

Core Viewpoint - ProShares has withdrawn its registration request for highly leveraged ETFs following a warning from the U.S. Securities and Exchange Commission (SEC) regarding risk exposures and the review of such plans [1][2]. Group 1: SEC's Regulatory Actions - The SEC sent letters to nine ETF providers, including ProShares, requesting clarity on risks associated with funds aiming to track up to five times the performance of underlying stocks [2]. - The SEC's concerns are based on Rule 18f-4 under the Investment Company Act of 1940, which mandates that a fund's value-at-risk must remain below 200% of an appropriate reference portfolio [5]. - The SEC suggested that fund managers revise their strategies to comply with regulations or withdraw their filings [5]. Group 2: Market Context and Trends - Leveraged ETFs have gained popularity among retail investors due to bullish market sentiment, speculative trading, and innovation in products, particularly around single stocks and cryptocurrencies [4]. - The scrutiny from the SEC adds pressure to the leveraged ETF market, which continues to attract retail investors despite concerns over complexity and risks [6]. - The ProShares UltraPro QQQ ETF, the largest leveraged ETF by assets under management, targets three times the daily performance of the Nasdaq 100 index and has seen over 40% gains this year, highlighting the potential for high returns alongside increased risks [7].

The SEC is cracking down on highly leveraged ETFs.This is probably a very good idea. https://t.co/rtgyG9WHhl ...

RT Denitsa Tsekova (@denitsa_tsekova)The SEC has issued a flurry of warning letters to some of the country’s most prolific providers of leveraged ETFs effectively blocking products designed to deliver 3x and 5x the daily returns of stocks, commodities and cryptocurrencies.https://t.co/E4UEHNVw63 ...

XRP and Solana Are Jumping. They Just Got 2 Leveraged ETFs.► https://t.co/xdhnUL4l9R https://t.co/xdhnUL4l9R ...

Core Insights - Bitcoin's decline in December led to an 80% drop in Strategy Inc.'s leveraged ETFs, resulting in a loss of $1.5 billion in retail savings from MSTX and MSTU [1] Company Summary - Strategy Inc., formerly known as Microstrategy, experienced significant financial impact due to the collapse of its leveraged ETFs [1]

All right, welcome back to the halftime report. I'm Dominic Chu. Now, earlier this month on ETF Edge, we learned that according to a recent market analysis by ETF Action, roughly 90% of single stock ETFs and leveraged or inverse strategies are owned by retail investors.They've been a favorite of bullish individual investors, and demand for increasingly complex products has skyrocketed. But as volatility spikes, it might be time to reassess potential risks versus rewards. So joining me now for the discussion ...

Leveraged 3x Bitcoin and Ethereum ETFs are coming to Europe, right as the markets are melting down. https://t.co/mQH4XUW2tR ...

Core Insights - European investors will soon have access to 3x leveraged short and long exchange-traded products (ETPs) for Bitcoin and Ethereum, launching on the SIX Swiss stock exchange [1][2] - The timing of these products is debated, with some viewing it as a good opportunity while others see it as risky due to recent market volatility [2] - Bitcoin and Ethereum have experienced significant declines, with Bitcoin down 11.8% and Ethereum down 12.5% in the past week [1] Group 1: New Product Launches - Leverage Shares is set to launch the world's first 3x and -3x Bitcoin and Ethereum ETFs in Europe next week [2] - The new leveraged products will join existing global offerings that provide amplified investment opportunities, including a recent application by Volatility Shares for up to 5x leveraged ETFs on Bitcoin, Solana, and XRP [3] - 21Shares has also introduced a 2x leveraged Dogecoin ETF, allowing investors to potentially double their returns on the meme coin [4] Group 2: Market Context - The launch of these products follows a significant market downturn, marked by a $19 billion liquidation event on October 10 [4] - Bitcoin's price recently fell to nearly $81,000, a seven-month low, contributing to over $2.2 billion in crypto liquidations [6] - Industry experts express concerns that the rise of leveraged products could pose systemic risks to the long-term health of the crypto market [5]

Leveraged ETFs bring even more risk to volatile assets like crypto. ...