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Question · Leveraged ETFs

What is a leveraged ETF?

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A fund that sets out to return a stated multiple of another thing’s move, each day. ETFIQ tracks 734 of them: 533 long and 201 inverse, on single companies, sectors, broad indices and asset classes. The multiple applies to a day, not to however long it is held.

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What it aimed at, and what it did, over the three months to Oct 28, 2026
UDOW3.4 pts short of its stated multiple
3.4 pts short of its stated multipleUDOW returned +2.9% while 3 times DIA's move would have been +6.3%. Data from Jul 29, 2026 to Oct 28, 2026.DIA +2.1% ×3 implies+6.3%UDOW returned+2.9%3.4 pts short of its stated multipleUDOW returned +2.9% while 3 times DIA's move would have been +6.3%. Data from Jul 29, 2026 to Oct 28, 2026.DIA +2.1% ×3 implies+6.3%UDOW returned+2.9%
SDOW2.2 pts ahead of its stated multiple
2.2 pts ahead of its stated multipleSDOW returned −4.1% while −3 times DIA's move would have been −6.3%. Data from Jul 29, 2026 to Oct 28, 2026.DIA +2.1% ×−3 implies−6.3%SDOW returned−4.1%2.2 pts ahead of its stated multipleSDOW returned −4.1% while −3 times DIA's move would have been −6.3%. Data from Jul 29, 2026 to Oct 28, 2026.DIA +2.1% ×−3 implies−6.3%SDOW returned−4.1%
EDC6.3 pts short of its stated multiple
6.3 pts short of its stated multipleEDC returned +5.7% while 3 times EEM's move would have been +12.0%. Data from Jul 29, 2026 to Oct 28, 2026.EEM +4.0% ×3 implies+12.0%EDC returned+5.7%6.3 pts short of its stated multipleEDC returned +5.7% while 3 times EEM's move would have been +12.0%. Data from Jul 29, 2026 to Oct 28, 2026.EEM +4.0% ×3 implies+12.0%EDC returned+5.7%
EDZ2.2 pts short of its stated multiple
2.2 pts short of its stated multipleEDZ returned −14.2% while −3 times EEM's move would have been −12.0%. Data from Jul 29, 2026 to Oct 28, 2026.EEM +4.0% ×−3 implies−12.0%EDZ returned−14.2%2.2 pts short of its stated multipleEDZ returned −14.2% while −3 times EEM's move would have been −12.0%. Data from Jul 29, 2026 to Oct 28, 2026.EEM +4.0% ×−3 implies−12.0%EDZ returned−14.2%
MEXX4.6 pts short of its stated multiple
4.6 pts short of its stated multipleMEXX returned −8.2% while 3 times EWW's move would have been −3.6%. Data from Jul 29, 2026 to Oct 28, 2026.EWW −1.2% ×3 implies−3.6%MEXX returned−8.2%4.6 pts short of its stated multipleMEXX returned −8.2% while 3 times EWW's move would have been −3.6%. Data from Jul 29, 2026 to Oct 28, 2026.EWW −1.2% ×3 implies−3.6%MEXX returned−8.2%
WEBL4.9 pts short of its stated multiple
4.9 pts short of its stated multipleWEBL returned +11.6% while 3 times FDN's move would have been +16.5%. Data from Jul 29, 2026 to Oct 28, 2026.FDN +5.5% ×3 implies+16.5%WEBL returned+11.6%4.9 pts short of its stated multipleWEBL returned +11.6% while 3 times FDN's move would have been +16.5%. Data from Jul 29, 2026 to Oct 28, 2026.FDN +5.5% ×3 implies+16.5%WEBL returned+11.6%
WEBS1.3 pts short of its stated multiple
1.3 pts short of its stated multipleWEBS returned −17.8% while −3 times FDN's move would have been −16.5%. Data from Jul 29, 2026 to Oct 28, 2026.FDN +5.5% ×−3 implies−16.5%WEBS returned−17.8%1.3 pts short of its stated multipleWEBS returned −17.8% while −3 times FDN's move would have been −16.5%. Data from Jul 29, 2026 to Oct 28, 2026.FDN +5.5% ×−3 implies−16.5%WEBS returned−17.8%
YINNOn its stated multiple
On its stated multipleYINN returned −30.8% while 3 times FXI's move would have been −30.3%. Data from Jul 29, 2026 to Oct 28, 2026.FXI −10.1% ×3 implies−30.3%YINN returned−30.8%On its stated multipleYINN returned −30.8% while 3 times FXI's move would have been −30.3%. Data from Jul 29, 2026 to Oct 28, 2026.FXI −10.1% ×3 implies−30.3%YINN returned−30.8%
YANG6.8 pts ahead of its stated multiple
6.8 pts ahead of its stated multipleYANG returned +37.1% while −3 times FXI's move would have been +30.3%. Data from Jul 29, 2026 to Oct 28, 2026.FXI −10.1% ×−3 implies+30.3%YANG returned+37.1%6.8 pts ahead of its stated multipleYANG returned +37.1% while −3 times FXI's move would have been +30.3%. Data from Jul 29, 2026 to Oct 28, 2026.FXI −10.1% ×−3 implies+30.3%YANG returned+37.1%
TYD2.6 pts short of its stated multiple
2.6 pts short of its stated multipleTYD returned −7.1% while 3 times IEF's move would have been −4.5%. Data from Jul 29, 2026 to Oct 28, 2026.IEF −1.5% ×3 implies−4.5%TYD returned−7.1%2.6 pts short of its stated multipleTYD returned −7.1% while 3 times IEF's move would have been −4.5%. Data from Jul 29, 2026 to Oct 28, 2026.IEF −1.5% ×3 implies−4.5%TYD returned−7.1%
TYO3.5 pts ahead of its stated multiple
3.5 pts ahead of its stated multipleTYO returned +8.0% while −3 times IEF's move would have been +4.5%. Data from Jul 29, 2026 to Oct 28, 2026.IEF −1.5% ×−3 implies+4.5%TYO returned+8.0%3.5 pts ahead of its stated multipleTYO returned +8.0% while −3 times IEF's move would have been +4.5%. Data from Jul 29, 2026 to Oct 28, 2026.IEF −1.5% ×−3 implies+4.5%TYO returned+8.0%
DFEN0.7 pts ahead of its stated multiple
0.7 pts ahead of its stated multipleDFEN returned −35.3% while 3 times ITA's move would have been −36.0%. Data from Jul 29, 2026 to Oct 28, 2026.ITA −12.0% ×3 implies−36.0%DFEN returned−35.3%0.7 pts ahead of its stated multipleDFEN returned −35.3% while 3 times ITA's move would have been −36.0%. Data from Jul 29, 2026 to Oct 28, 2026.ITA −12.0% ×3 implies−36.0%DFEN returned−35.3%
NAIL5.1 pts short of its stated multiple
5.1 pts short of its stated multipleNAIL returned −26.4% while 3 times ITB's move would have been −21.3%. Data from Jul 29, 2026 to Oct 28, 2026.ITB −7.1% ×3 implies−21.3%NAIL returned−26.4%5.1 pts short of its stated multipleNAIL returned −26.4% while 3 times ITB's move would have been −21.3%. Data from Jul 29, 2026 to Oct 28, 2026.ITB −7.1% ×3 implies−21.3%NAIL returned−26.4%
TNA3.3 pts short of its stated multiple
3.3 pts short of its stated multipleTNA returned −10.2% while 3 times IWM's move would have been −6.9%. Data from Jul 29, 2026 to Oct 28, 2026.IWM −2.3% ×3 implies−6.9%TNA returned−10.2%3.3 pts short of its stated multipleTNA returned −10.2% while 3 times IWM's move would have been −6.9%. Data from Jul 29, 2026 to Oct 28, 2026.IWM −2.3% ×3 implies−6.9%TNA returned−10.2%
URTY3.3 pts short of its stated multiple
3.3 pts short of its stated multipleURTY returned −10.2% while 3 times IWM's move would have been −6.9%. Data from Jul 29, 2026 to Oct 28, 2026.IWM −2.3% ×3 implies−6.9%URTY returned−10.2%3.3 pts short of its stated multipleURTY returned −10.2% while 3 times IWM's move would have been −6.9%. Data from Jul 29, 2026 to Oct 28, 2026.IWM −2.3% ×3 implies−6.9%URTY returned−10.2%
SRTY0.9 pts ahead of its stated multiple
0.9 pts ahead of its stated multipleSRTY returned +7.8% while −3 times IWM's move would have been +6.9%. Data from Jul 29, 2026 to Oct 28, 2026.IWM −2.3% ×−3 implies+6.9%SRTY returned+7.8%0.9 pts ahead of its stated multipleSRTY returned +7.8% while −3 times IWM's move would have been +6.9%. Data from Jul 29, 2026 to Oct 28, 2026.IWM −2.3% ×−3 implies+6.9%SRTY returned+7.8%
TZA1 pt ahead of its stated multiple
1 pt ahead of its stated multipleTZA returned +7.9% while −3 times IWM's move would have been +6.9%. Data from Jul 29, 2026 to Oct 28, 2026.IWM −2.3% ×−3 implies+6.9%TZA returned+7.9%1 pt ahead of its stated multipleTZA returned +7.9% while −3 times IWM's move would have been +6.9%. Data from Jul 29, 2026 to Oct 28, 2026.IWM −2.3% ×−3 implies+6.9%TZA returned+7.9%
TPOR2.3 pts short of its stated multiple
2.3 pts short of its stated multipleTPOR returned −19.1% while 3 times IYT's move would have been −16.8%. Data from Jul 29, 2026 to Oct 28, 2026.IYT −5.6% ×3 implies−16.8%TPOR returned−19.1%2.3 pts short of its stated multipleTPOR returned −19.1% while 3 times IYT's move would have been −16.8%. Data from Jul 29, 2026 to Oct 28, 2026.IYT −5.6% ×3 implies−16.8%TPOR returned−19.1%
DPST3 pts short of its stated multiple
3 pts short of its stated multipleDPST returned −17.4% while 3 times KRE's move would have been −14.4%. Data from Jul 29, 2026 to Oct 28, 2026.KRE −4.8% ×3 implies−14.4%DPST returned−17.4%3 pts short of its stated multipleDPST returned −17.4% while 3 times KRE's move would have been −14.4%. Data from Jul 29, 2026 to Oct 28, 2026.KRE −4.8% ×3 implies−14.4%DPST returned−17.4%
MIDU3.1 pts short of its stated multiple
3.1 pts short of its stated multipleMIDU returned −7.9% while 3 times MDY's move would have been −4.8%. Data from Jul 29, 2026 to Oct 28, 2026.MDY −1.6% ×3 implies−4.8%MIDU returned−7.9%3.1 pts short of its stated multipleMIDU returned −7.9% while 3 times MDY's move would have been −4.8%. Data from Jul 29, 2026 to Oct 28, 2026.MDY −1.6% ×3 implies−4.8%MIDU returned−7.9%

The fund holds swaps or futures rather than the thing itself, sized each morning so that a one percent move in the underlying that day produces the stated multiple. At the close it resets and does it again from wherever it now stands.

The reset is the mechanism and the problem. Over one day the fund does what the name says. Over a week it is usually close. Over a quarter it can be far off, and which way depends on whether the underlying trended or thrashed about.

An inverse fund works the same way with the sign reversed. It is not a way to hold a short position. The same compounding applies, and the fund rebuilds its position every night.

On ETFIQ today

Answered from ETFIQ data as of Oct 28, 2026.

Points (pts) are percentage points.

TickerFundSaysUnderlying assetSegmentFund returnedDifference
UDOWProShares UltraPro Dow30+3xDIAus large cap+2.9%−3.4 pts
SDOWProShares UltraPro Short Dow30−3xDIAus large cap−4.1%+2.2 pts
EDCDirexion Daily MSCI Emerging Markets Bul+3xEEMcountry+5.7%−6.3 pts
EDZDirexion Daily MSCI Emerging Markets Bea−3xEEMcountry−14.2%−2.2 pts
MEXXDirexion Daily MSCI Mexico Bull 3X ETF+3xEWWcountry−8.2%−4.6 pts
WEBLDirexion Daily Dow Jones Internet Bull 3+3xFDNsector+11.6%−4.9 pts
WEBSDirexion Daily Dow Jones Internet Bear 3−3xFDNsector−17.8%−1.3 pts
YINNDirexion Daily FTSE China Bull 3X ETF+3xFXIcountry−30.8%−0.5 pts
YANGDirexion Daily FTSE China Bear 3X ETF−3xFXIcountry+37.1%+6.8 pts
TYDDirexion Daily 7-10 Year Treasury Bull 3+3xIEFbond−7.1%−2.6 pts
TYODirexion Daily 7-10 Year Treasury Bear 3−3xIEFbond+8.0%+3.5 pts
DFENDirexion Daily Aerospace & Defense Bull+3xITAsector−35.3%+0.7 pts
NAILDirexion Daily Homebuilders & Supplies B+3xITBsector−26.4%−5.1 pts
TNADirexion Daily Small Cap Bull 3X ETF+3xIWMus small cap−10.2%−3.3 pts
URTYProShares UltraPro Russell2000+3xIWMus small cap−10.2%−3.3 pts
SRTYProShares UltraPro Short Russell2000−3xIWMus small cap+7.8%+0.9 pts
TZADirexion Daily Small Cap Bear 3X ETF−3xIWMus small cap+7.9%+1.0 pts
TPORDirexion Daily Transportation Bull 3X ET+3xIYTsector−19.1%−2.3 pts
DPSTDirexion Daily Regional Banks Bull 3X ET+3xKREsector−17.4%−3.0 pts
MIDUDirexion Daily Mid Cap Bull 3X ETF+3xMDYus mid cap−7.9%−3.1 pts
Where these numbers came from
The multiple each fund states in its own registered name, from the SEC investment company series and class file ↗SEC EDGAR, full-text search of fund filings ↗SEC Form N-PORT, what a fund filed it holds ↗Rule 19a-1, what a distribution notice must say ↗

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ETFIQ, What is a leveraged ETF?, data as of Oct 28, 2026. https://etfiq.com/questions/what-is-a-leveraged-etf

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