For investors willing to tolerate high risk in the hope of winning big on intra-day moves, leveraged ETFs use derivatives to amplify gains -- although the risk is that much bigger when stocks fall. They allow investors to make outsized bets on limited trading periods instead of being designed for a long-term buy and hold strategy.

We divided them into double- and triple-leveraged S&P 500 ETFs and used an expense ratio to track the lowest fees as well as three-month daily volume to rank them in terms of liquidity. We excluded inverse ETFs. All numbers are as of Nov. 17, 2022.

For twice-leveraged ETFs, the Direxion's leveraged ETF (SPUU) cost the least, while one from ProShares (SSO) had the highest liquidity. They ranked in reverse order for triple-leveraged ETFs. The high-risk, high-cost structure of leveraged ETFs makes them suitable for experienced investors who have above-average risk tolerance.

Lowest Fees (Double-Leverage): Direxion Daily S&P 500 Bull 2× Shares (SPUU)

• Performance Over One Year: -32.7%
• Expense Ratio: 0.63%
• Annual Dividend Yield: 5.30%
• Three-Month Average Daily Volume: 58,597
• Assets Under Management: $52.2 million
• Inception Date: May 28, 2014
• Issuer: Rafferty Asset Management

SPUU seeks daily investment returns, before fees and expenses, of 200% of the performance of the S&P 500 Index. Investors shouldn't expect this fund to provide two times the cumulative return of the S&P 500 for periods greater than a single day. Investors with a low tolerance for risk may want to consider other investments. SPUU holds shares of the iShares Core S&P 500 ETF (IVV) to track the S&P 500 and uses various swaps to obtain leveraged exposure to the index.

Highest Liquidity (2x Leverage): ProShares Ultra S&P 500 (SSO)

• Performance Over One-Year: -33.0%
• Expense Ratio: 0.89%
• Annual Dividend Yield: 0.17%
• Three-Month Average Daily Volume: 6,458,386
• Assets Under Management: $3.0 billion
• Inception Date: June 19, 2006
• Issuer: ProShares

SSO seeks daily investment returns, before fees and expenses, that are twice the daily performance of the S&P 500 Index. The fund’s leverage resets daily, resulting in compounding of returns when held for multiple periods. This ETF is designed for investors who can tolerate risk and a willingness to monitor their holdings on a daily basis. SSO holds shares of the companies that comprise the S&P 500 and uses various swaps to provide leveraged exposure to the index.

Lowest Fees (3x Leverage): ProShares UltraPro S&P 500 (UPRO)

• Performance Over One-Year: -50.2%
• Expense Ratio: 0.91%
• Annual Dividend Yield: 0.04%
• Three-Month Average Daily Volume: 13,867,516
  
• Assets Under Management: $2.3 billion
• Inception Date: June 25, 2009
• Issuer: ProShares

UPRO seeks daily investment returns, before fees and expenses, that are triple the return of the S&P 500 Index for a single day, as measured from one net asset value (NAV) calculation to the next. The fund’s leverage resets on a daily basis, which results in the compounding of returns when held for multiple periods. Holdings of this ETF should be monitored daily and used only by investors with a high tolerance for risk. UPRO holds shares of the companies that comprise the S&P 500 and uses various swaps to provide leveraged exposure to the index.

Highest Liquidity (3x Leverage): Direxion Daily S&P 500 Bull 3x Shares (SPXL)

• Performance Over One-Year: -49.9%
• Expense Ratio: 0.97%
• Annual Dividend Yield: 0.12%
• Three-Month Average Daily Volume: 14,277,112
• Assets Under Management: $2.7 billion
• Inception Date: Nov. 5, 2008
• Issuer: Rafferty Asset Management

SPXL targets daily investment returns of 300% of those of the S&P 500 Index. Leverage for SPXL resets daily, so compounding of returns is a concern for investors holding the fund for longer than a single day. It is designed for sophisticated investors with a high risk tolerance. SPXL holds shares of companies in the S&P 500 Index and uses swaps to provide leveraged exposure.

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