Leveraged and inverse ETFs (exchange-traded funds) and ETNs (exchanged-traded notes) are types of ETPs (exchanged-traded products) that seek to provide a multiple and/or the opposite performance of a given index or benchmark. Investing in these types of exchange-traded products (ETPs) involves heightened risks, including higher margin requirements, leverage, derivatives, and complex investment strategies. These securities are designed for daily use only and are generally not intended to be held overnight or long term. They are not suitable for most investors. In fact, some ETFs and ETNs have had to be disbanded after particularly volatile events disrupted the underlying investments. Therefore, it’s important to learn more about these complex investments and their risks and benefits before trading them.
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