Nasdaq Leverage ETFs Gain Popularity Among High-Risk Investors

Recently, Nasdaq leveraged Exchange Traded Funds (ETFs) have attracted attention among investors pursuing high risks and high returns. This is primarily due to their superior performance compared to standard index products. For instance, over the past decade, the Nasdaq 100 index rose by 497.8%, whereas the Nasdaq 100 leverage index surged by 2042.3%. Such performance is attributed to the characteristic of leverage products, which follow the daily fluctuation rate of the underlying index on a multiplied scale. Consequently, investors are increasingly utilizing tax-advantaged accounts like individual savings accounts (ISAs) to invest in Nasdaq 100 leverage ETFs.
Domestically, two major investment options include the 'KODEX Nasdaq 100 Leverage ETF' and 'TIGER Nasdaq 100 Leverage ETF'. Though these products offer the potential for high returns, investors must also accept the accompanying high risks. Despite the strong upward trend of Nasdaq 100 leverage ETFs, the leveraged products in Korea’s KOSPI and KOSDAQ markets have not met expectations. This discrepancy is largely due to structural differences between global and domestic markets, which have resulted in varied performance outcomes.
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