{"id":175740,"date":"2020-09-08T20:52:00","date_gmt":"2020-09-09T00:52:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/trading-lessons\/intro-to-leveraged-inverse-etfs\/"},"modified":"2024-09-03T13:00:35","modified_gmt":"2024-09-03T17:00:35","slug":"intro-to-leveraged-inverse-etfs","status":"publish","type":"trading-lessons","link":"https:\/\/www.interactivebrokers.com\/campus\/trading-lessons\/intro-to-leveraged-inverse-etfs\/","title":{"rendered":"Intro to Leveraged &amp; Inverse ETFs"},"content":{"rendered":"<p>You&#8217;ve probably heard a lot recently about exchange-traded funds or ETFs, which resemble mutual funds in structure but can be traded throughout the day like stocks.<\/p>\n<p>Well, Direxion shares are leveraged ETFs, powerful daily trading tools that are designed to help increase exposure and stay agile in rapidly changing markets.<\/p>\n<p>Jack is a conservative investor with a buy and hold approach and Jill is an investment professional and active trader who is willing to take on more risk. We&#8217;ll get into the details in the next section, but first allow us to explain some important information about the funds.<\/p>\n<p>These are not your average ETFs.<\/p>\n<p>Direxion shares and other leveraged ETFs are specifically designed for sophisticated investors who; A understand the risks associated with the use of leverage; B understand the consequences of seeking daily leveraged investment results; and C intend to actively monitor their investments.<\/p>\n<p>Direxion shares are not intended for conservative investors who; A cannot tolerate substantial short-term losses; B are unfamiliar with a unique nature and performance characteristics of funds that seek leveraged daily investment results; and C are long-term investors who do not monitor their portfolios frequently.<\/p>\n<p>Carefully consider the investment objectives, risks charges and expenses of Direxion shares before investing. The prospectus and summary prospectus contain this and other information and can be obtained by visiting <a href=\"https:\/\/www.direxioninvestments.com\">www.direxioninvestments.com<\/a>.<\/p>\n<p>Investing involves risk, including the possible loss of principal. The use of derivatives, such as futures contracts, forward contracts, options and swaps are subject to market risks that may cause their price to fluctuate over time.<\/p>\n<p>The funds do not attempt to, and should not be expected to, provide returns, which are a multiple of the return of the index for periods other than a single day.<\/p>\n<p>For specific risks including leverage, compounding, volatility and exchange-traded funds, please read the prospectus. To learn more about Direxion\u2019s leveraged ETFs please visit <a href=\"https:\/\/www.direxioninvestments.com\">Direxioninvestments.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This Lesson is meant to help you understand if Direxion Shares are right for you.<\/p>\n","protected":false},"author":850,"featured_media":211301,"parent":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"footnotes":""},"contributors-categories":[13701],"traders-academy":[13126,13128,13132],"class_list":{"0":"post-175740","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-direxion","7":"traders-academy-intermediate-trading","8":"traders-academy-level","9":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 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