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The Right Leveraged ETFs, Right Now


Data indicate plenty of risk-tolerant traders continue to embrace leveraged exchange traded funds in search of outsized, short-term gains.

Just last month, the ProShares Ultra Russell2000 (UWM) , a double leveraged bet on the Russell 2000, and the ProShares Ultra S&P500 ETF (SSO) , which attempts to deliver twice the daily returns of the S&P 500, hauled in $3.3 billion combined. [Some Leveraged ETFs Gained Supporters in March]

Additionally, the crisis in Ukraine stoked increased activity in triple-leveraged Russia ETFs as the Direxion Daily Russia Bear 3x Shares (RUSS) and the Direxion Daily Russia Bull 3x Shares (RUSL) repeatedly saw higher volume and increased creation activity during March.[White House is a Bad Place for ETF Advice]

The latter point illustrates the fact profitable use of leveraged ETFs usually involves good timing. And that is what we’ll address here: Some leveraged ETFs, both bullish and bearish, that due to current market conditions, may be worth considering for risk-tolerant traders. Let’s get started with the…