SIE: Nontraditional ETFs

Taken from our SIE Online Guide

Nontraditional ETFs

ETFs as just described are called traditional ETFs. They can be contrasted with riskier nontraditional ETFs, which were introduced to the markets in 2006. Two kinds of non-traditional ETFs are leveraged ETFs and inverse ETFs. Leveraged ETFs use derivative products such as equity futures, options, and swaps to receive daily returns two to three times above the returns of the index t

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