What are "leveraged" ETF's?

For instance, the ProShares UltraShort S&P 500 ETF (SDS) is described as a "leveraged" ETF that shorts the S&P and returns at a 2 to 1 ratio.

What do they actually do to make their ETF "leveraged" - the mechanics of the method, I mean?

Answers

billyyy answered a question in ETFs and Funds.
102 points

billyyy answered 4 months ago …

a fucking scam

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billyyy answered a question in ETFs and Funds.
102 points

billyyy answered 4 months ago …

sorry, i cannot delete that. i didnt realize it went live

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