The best ETFs including leveraged funds

January 8, 2020

Introduction

I like to study the topic called best 10 year annualized return ETF, so I have to chance to learn a new concept called including leveraged funds, and also a new term called undergo wider swing.

Case study

Now, let's take a look at the best ETFs including leveraged funds, based on 10-year average annual returns. Leveraged funds tend to undergo wider swings, since they usually aim for double or triple the daily return (or inverse) of an index. So while they can produce big gains quickly, investors can also suffer big losses in a short time. They also tend to carry higher expense ratios than their non-leveraged counterparts.

ProShares Ultra QQQ (QLD) came out on top with a 28.6% annualized return over the past 10 years. The $2.1 billion fund shoots for twice the daily performance of the Nasdaq 100 index. It carries a 0.95% expense ratio. QQQ charges 0.20%.

ProShares Ultra Dow 30 (DDM), with $437 million in assets, has produced a 10-year average return of 18.4%. This leveraged play targets twice the daily performance of the Dow Jones industrial average. It charges 0.95%. The non-leveraged SPDR Dow Jones Industrial Average (DIA) costs 0.17%.