"For example, bond investors can tailor their fixed income allocation based on their tolerances for interest rate risk and/or credit quality." For a one-size-fits-all bond ETF, investors can buy AGG.
Leveraged ETFs aim to amplify their benchmarks' daily returns by a fixed factor—usually 2X or 3x. For example, let’s say there was a 3X leveraged S&P 500 ETF. If the S&P 500 went up by 5% ...
Inverse ETFs are bearish securities that aim to produce returns equal and opposite to the benchmarks they track. Inverse ETFs, also known as bear ETFs or short ETFs, are pooled investment vehicles ...
The best defensive ETFs are ideal for investors seeking out safety amid an uncertain market backdrop. Indeed, the Federal Reserve has started lowering interest rates from their highest level in ...
Nathan Reiff has been writing expert articles and news about financial topics such as investing and trading, cryptocurrency, ETFs, and alternative investments on Investopedia since 2016.
However, an inverse ETF can also be leveraged, meaning it can seek 2x or 3x the expected performance of the index or asset it tracks. That's where things get especially risky. In this example ...