What is Russell 2000 Leveraged ETF?


Investors are mainly indulged in the Russell 2000 Leveraged Exchange Traded Fund (ETF). That is due to a wide array of stocks included with it and how they get the provision to grow from the small-caps focus.

What is Russell 2000 Leveraged ETF?

A Russell 2000 leveraged ETF represents marketable security that uses financial derivatives like futures, options, margin accounts, debts, and contracts and provides investors the ability to achieve two or three times the daily performance of the Russell 2000 index, comprised of 2,000 small-cap companies.

Leveraged ETF is different from traditional ETF because they follow indices on a 1:1 and 2:1 and 3:1 basis, respectively. Therefore, investors can utilize this option to observe both long and short-term trades and determine the losses and profits in the market movement.

Leveraged Exchange Traded Funds include indices like Dow Jones Industrial Average and S&P 500. However, the Russell 2000 leveraged  ETF (Exchange Traded Funds) group perks up the interest of the investors. The Russell 200 ETF monitors the Russell 2000 index that has 2000 small-cap companies with 3000 stocks of Russell. As a result, 98% of the stocks in the U.S. that are publicly traded include Russell 2000 stocks.

List of Eight Russell 2000 Exchange Traded Funds

(RWM) or ProShares Short Russell2000 

RWM current price:

This ETF aims to acquire 1x returns on the investment benchmark in one day. This is calculated through the NAV measurement. Since it focuses on continuous daily returns, Returns based on period will not make any difference and give direction from the target in the same period.  Such changes will be more refined for funds that are huge and have inverse multiples with eruptive benchmarks. Therefore, investors should observe the holdings daily. The expense ratio for Proshares is 0.95%, and the assets in its custody are worth $304.71M.

(TNA) OR Direxion Daily Small Cap Bull 3x shares

Direxion Daily Small Cap Bull 3x shares focus on investment results daily, before the expenses and fee from 300% to opposite of 300%, based on the Russell 2000 index’s performance. There is zero assurance that the investment objectives will be reached. The return on this leveraged Exchange Traded Fund juggles between 300% or -300% daily on the benchmark index. You cannot desire to get returns at 300% or -300% for more than a day. The assets with the management value at $722.70M and 1.14% are the ETF expense ratio.

(TZA) or Direxion Daily Small Cap Bear 3x Shares

 Direxion Daily Small Cap Bear 3x Shares is concerned with the return on investments daily, before the expenses and fee from 300% to opposite of 300%, based on the Russell 2000 index’s performance. There is zero assurance that the investment objectives will be reached. The return on this leveraged Exchange Traded Fund juggles between 300% or -300% daily on the benchmark index. You cannot desire to get returns at 300% or -300% for more than a day. The assets with the management value at $339.60M and 1.14% are the ETF expense ratio.

(URTY) or ProShares UltraPro Russell2000

The ProShares UltraPro is concerned with 3x returns for the benchmark on only a single day. This is calculated through the NAV measurement. Since it focuses on continuous daily returns, Returns based on the period will not make any difference and give direction from the target in the same period.  Such changes will be more refined for funds that are huge and have inverse multiples with eruptive benchmarks. Therefore, investors should observe the holdings daily. The expense ratio for Proshares is 0.95%, and the assets in its custody are worth $91.43M.

(UWM) or ProShares Ultra

The ProShares Ultra is concerned with 2x returns for the benchmark on only a single day. This is calculated through the NAV measurement. Since it focuses on continuous daily returns, Returns based on the period will not make any difference and give direction from the target in the same period.  Such changes will be more refined for funds that are huge and have inverse multiples with eruptive benchmarks. Therefore, investors should observe the holdings daily. The expense ratio for Proshares is 0.95%, and the assets in its custody are worth $193.40M.

(SRTY) or ProShares UltraPro Short Russell2000

The ProShares UltraPro Short is concerned with -3x returns for the benchmark on only a single day. This is calculated through the NAV measurement. Since it focuses on continuous daily returns, Returns based on the period will not make any difference and give direction from the target in the same period.  Such changes will be more refined for funds that are huge and have inverse multiples with eruptive benchmarks. Therefore, investors should observe the holdings daily. The expense ratio for Proshares is 0.95%, and the assets in its custody are worth $ 62.29M.

(TWM) or ProShares UltraShort Russell2000

ProShares UltraShort Russell2000 is concerned with -2x returns for the benchmark on only a single day. This is calculated through the NAV measurement. Since it focuses on continuous daily returns, Returns based on the period will not make any difference and give direction from the target in the same period.  Such changes will be more refined for funds that are huge and have inverse multiples with eruptive benchmarks. Therefore, investors should observe the holdings daily. The expense ratio for Proshares is 0.95%, and the assets in its custody are worth $ 85.34M.

(SMLL) or Direxion Daily Small Cap Bull 2x

 Direxion Daily Small Cap Bull 2x  focuses on investment results on a single day basis, before the expenses and fee from 200%, based on the Russell 2000 index’s performance. There is zero assurance that the investment objectives will be reached. The return on this leveraged Exchange Traded Fund returns 200% daily on the benchmark index. You cannot desire to get returns at more than 200% for more than a day. The assets with the management value at $3.06M and 0.79% are the ETF expense ratio.

Fxigor

Fxigor

Igor has been a trader since 2007. Currently, Igor works for several prop trading companies. He is an expert in financial niche, long-term trading, and weekly technical levels. The primary field of Igor's research is the application of machine learning in algorithmic trading. Education: Computer Engineering and Ph.D. in machine learning. Igor regularly publishes trading-related videos on the Fxigor Youtube channel. To contact Igor write on: igor@forex.in.rs

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