Volatility's Double Edged Sword: Why Leveraged ETFs Can Be a Recipe for Disaster The allure of amplified returns has long been a siren song for investors, particularly when it comes to high flying stocks like Tesla.
Beneath the surface of those eye catching gains lies a more sinister reality: leveraged exchange traded funds (ETFs) can be a recipe for disaster, even when the underlying stock is trending upward.
The Direxion Daily TSLA Bull 2X Shares ETF (NASDAQ:TSLL), which promises to deliver twice Tesla's daily returns, is a prime example.