Ultra Finance ETFs: A Deep Dive
Ultra Finance ETFs, also known as leveraged finance ETFs, are exchange-traded funds that aim to amplify the returns of an underlying financial index or asset class. They achieve this leverage, typically 2x or 3x, through the use of derivatives like swaps and options. This means if the underlying index rises by 1%, a 2x leveraged ETF aims to increase by 2%, and a 3x leveraged ETF aims for a 3% gain (before fees and expenses).