An exchange-traded fund (ETF) that uses leverage to generate amplified returns. ETFs represent marketable securities that are accompanied with financial derivatives and certain debt securities as a means by which potential returns from the underlying index or market benchmark can be amplified in accordance with the magnitude of leverage.

It provides ETF holders with a multiple of the index or benchmark performance that is it tracks over the investment timeframe. The ETF, rather than matches the underlying index’s returns, it aims to increase these returns by two or three times or even more, depending on the amount of leverage involved.