Leveraged ETFs allow you to increase your assets efficiently. While they are not suitable for long-term investments, you can earn 30-40% returns in a month or two by using leveraged ETFs for short-term investments.

However, there are many types of leveraged ETFs. The investment portfolio varies widely, and the yield will vary depending on which ETF you use. Also, there are 2x and 3x leverage options. In addition, there are bull and bear ETFs.

By using these different types of ETFs, leveraged ETFs can give you a large return in the short term. So, first of all, you need to understand what types of leveraged ETFs are available.

Leveraged ETFs can cause large losses in a short period of time if they are used incorrectly. Therefore, I will explain what types of leveraged ETFs are available.

Learn the Types of ETFs That Allow Leveraged Investment

In general, when investing in stocks, you expect the price of the stock to rise by taking a long position (buying). It is also common to invest in stocks without leverage.

On the other hand, there are ETFs that allow you to invest with leverage. A famous example is TQQQ, which allows you to invest in the Nasdaq 100 (QQQ) with three times the leverage. The following is the historical price trend of TQQQ.

In this way, by using TQQQ when the stock price temporarily declines, you can earn a 30-40% return by returning to the original price.

There Are Two Types of Leveraged ETFs: Bulls and Bears

There are two types of leveraged ETFs to choose from: bulls and bears. Bulls are animals that push up against their opponents. Therefore, in the stock market, it means a bull market and indicates that the stock price is going up. Bears, on the other hand, attack by swinging their hands down. Therefore, in the stock market, it means a bear market and the stock price is falling.

When you buy a bull ETF, the return will be greater if the stock price rises. For example, if the stock price rises by 1%, investing in a 3x Bull ETF will result in a 3% increase.

On the other hand, if you buy a bear ETF, you will get a return from a decline in the stock price. For example, if the stock price falls by 1%, you will gain 3% if you invest in the 3x Bear ETF.

For example, below is a comparison of TQQQ (Nasdaq 100 3x Bull Leverage) and SQQQ (Nasdaq 100 3x Bear Leverage).

Comparing TQQQ (blue line) and SQQQ (yellow line), we can see that the price movements are exactly the opposite.

Buying a bear ETF is the same as shorting a stock. When shorting (selling) stocks, you can easily leverage your trade by using bear ETFs.

Types of Bull and Bear Leveraged ETFs

What types of Bull ETFs and Bear ETFs are available? If you want to invest in leveraged ETFs, you need to understand in advance which types of leveraged mutual funds are available.

Leveraged ETFs include those that use major indexes such as the Nasdaq or S&P 500 as benchmarks, and those that use specific countries such as China or Japan as benchmarks. There are also ETFs that leverage specific sectors such as semiconductor stocks or financial stocks.

From these ETFs, you have to choose the mutual fund you want to invest in.

When investing, it is common sense to invest in mutual funds listed in the US in US dollars. For this reason, I will introduce the major leveraged ETFs listed in the US below.

Leverage on Nasdaq 100

TickerLeverageBull or Bear
TQQQ3xBull (Long)
QLD2xBull (Long)
SQQQ3xBear (Short)
QID2xBear (Short)

Leverage on S&P 500

TickerLeverageBull or Bear
SPXL3xBull (Long)
SSO2xBull (Long)
SPXS3xBear (Short)
SDS2xBear (Short)

Leverage on Dow Jones Industrial Average

TickerLeverageBull or Bear
UDOW3xBull (Long)
DDM2xBull (Long)
SDOW3xBear (Short)
DXD2xBear (Short)

Leverage on Russell 2000 (Small Cap Stocks)

TickerLeverageBull or Bear
TNA3xBull (Long)
UWM2xBull (Long)
TZA3xBear (Short)
TWM2xBear (Short)

Leverage by Sectors

-Leverage on US Semiconductor Stocks

TickerLeverageBull or Bear
SOXL3xBull (Long)
USD2xBull (Long)
SOXS3xBear (Short)
SSG2xBear (Short)

-Leverage on US Technology Stocks

TickerLeverageBull or Bear
TECL3xBull (Long)
TECS3xBear (Short)

-Leverage on US Healthcare Stocks

TickerLeverageBull or Bear
CURE3xBull (Long)
RXL2xBull (Long)
RXD2xBear (Short)

-Leverage on US Financial Stocks

TickerLeverageBull or Bear
FAS3xBull (Long)
FAZ3xBear (Short)

-Leverage on US Biotech Stocks

TickerLeverageBull or Bear
LABU3xBull (Long)
LAND3xBear (Short)

-Leverage on US Gold Mining Stocks

TickerLeverageBull or Bear
NUGT2xBull (Long)
DUST2xBear (Short)

-Leverage on US Energy Stocks

TickerLeverageBull or Bear
ERX2xBull (Long)

Leverage by Country

-Leverage on Chinese Stocks

TickerLeverageBull or Bear
YINN3xBull (Long)
XPP2xBull (Long)
YANG3xBear (Short)
FXP2xBear (Short)

-Leverage on Japanese Stocks

TickerLeverageBull or Bear
EZJ2xBull (Long)
EWV2xBear (Short)

-Leverage on Indian Stocks

TickerLeverageBull or Bear
INDL2xBull (Long)

-Leverage on Russian Stocks

TickerLeverageBull or Bear
RUSL2xBull (Long)

-Leverage on Brazilian Stocks

TickerLeverageBull or Bear
BRZU2xBull (Long)
BZQ2xBear (Short)

-Leverage on Mexican Stocks

TickerLeverageBull or Bear
MEXX3xBull (Long)

Learn What Types of Mutual Funds Are Available for Leveraged Investments

Leveraged ETFs are excellent to use if you want to get a large return on your investment in a short period of time. While you will need to check the news and stock prices daily, it is normal to get 30-40% returns in a month or two. Leveraged ETFs are an easy way to invest with two or three times the leverage.

There are many types of leveraged mutual funds. The investment portfolio varies, and you can even invest in countries other than the US. You can also profit by taking a short position (bear) instead of a long position (bull).

However, it is important to understand that if you use leveraged mutual funds, you will incur a large loss if you fail. Therefore, it is an investment product for professionals.

In any case, understand what types of leveraged ETFs are available. Then, you can choose the best mutual fund to invest in.