Leveraged ETFs deliver fewer surprises in calm markets

Their longer-term performance tracks indexes more closely when stocks are less volatile

The quiet that has enveloped the stock market in recent months has been a boon to a much-criticised corner of the fund world: exchange-traded index funds that use leverage.

These ETFs pledge to deliver twice or three times the returns of an index on a daily basis, or to move in the opposite direction by that magnification.

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Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a BillionaireExternal link

Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a Billionaire