A new exchange-traded fund has launched, allowing investors to gain leveraged exposure to the entire global equity market for the first time.
The product offers a 2x daily return on the MSCI World index, marking a significant expansion in the range of leveraged instruments available to retail and institutional investors seeking broad market beta.
The launch comes as the MSCI World index has delivered substantial long-term returns, rising approximately 5,000 percent over the past 16 years.
However, leveraged ETFs are designed for short-term trading and carry significant risks, including volatility decay and the potential for substantial losses during market downturns.
They are not suitable for buy-and-hold strategies.
This development adds to the growing complexity of the ETF landscape.