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Ultra ETF

A type of exchange-traded fund (ETF) that uses leverage to increase the return of a specific benchmark. Introduced in 2006, ultra ETFs have expanded to encompass a variety of ETFs with underlying benchmarks ranging from broad market indexes like the S&P 500, Nasdaq 100 and Russell 2000 to specific sectors (financial, technology, health care...), industries (semiconductors, biotech, oil and gas exploration and production...), geographical regions (Asia, Europe, Mexico...) and even short-sell holdings (inverse S&P 500, inverse Nasdaq 100, inverse Russel 2000...). Ultra ETFs are often referred to as leveraged ETFs or geared funds.


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