Amazon Leveraged ETFs for High-Risk Investors

Amazon has long been a pioneer in the world of technology and finance. Leveraged ETFs are a type of exchange-traded fund that uses borrowed money to amplify returns.

Amazon's involvement with leveraged ETFs is a relatively recent development, but it has already made a significant impact on the market. This is likely due to the company's extensive experience in leveraging technology to drive growth.

The use of leveraged ETFs by Amazon is particularly appealing to high-risk investors who are looking to maximize their returns. According to recent data, these investors have seen significant gains in their portfolios.

Worth a look: Do Angel Investors Get Equity

The Amazon Leveraged ETF has a Net Expense Ratio of 0.95% as of the Operating Expense Limitation Agreement, which Rafferty Asset Management, LLC has contractually agreed to until September 1, 2025.

The Net Expense Ratio includes management fees, other operating expenses, and Acquired Fund Fees and Expenses. If these expenses were included, the expense ratio would be higher.

For your interest: Institutional Asset Management

The expense ratio for AMZUNAV and AMZUMarket Close is 1.08 / 1.06% and 1.08 / 1.06% respectively, which is higher than the Net Expense Ratio. The expense ratio for AMZDNAV and AMZDMarket Close is 1.37 / 1.09%.

Here's a comparison of the performance of the Amazon Leveraged ETF:

The inception date for all funds is September 7, 2022.

The GraniteShares 2x Long AMZN Daily ETF is designed to track the daily performance of Amazon's stock, aiming to return 200% of the daily percentage change before fees and expenses.

The fund's objective is to provide daily investment results that are 2 times the daily percentage change of Amazon's common stock.

It's essential to note that the fund should not be expected to provide 2 times the cumulative return of AMZN for periods greater than a day.

Fund exposures are subject to change, so it's crucial to stay informed about the fund's performance and any adjustments made.

You might like: Internal Rate of Return Private Equity

When investing in an Amazon Leveraged ETF, it's essential to consider the risk and returns involved.

The Amazon Leveraged ETF can be a high-risk investment, as it uses leverage to amplify returns, which can also amplify losses.

This ETF is designed to track the performance of Amazon's stock, but with a 2x or 3x multiplier, making it a more aggressive investment.

The potential for higher returns is offset by the increased risk of significant losses, especially in a declining market.

A different take: Vanguard Index Funds Returns

Investing in Amzu, specifically the Direxion Daily AMZN Bull 2X Shares ETF, requires a high risk-tolerance due to its relatively low yield.

This ETF has a lackluster price performance compared to the underlying stock, making it a high-risk investment.

Investors should carefully consider their risk tolerance before investing in Amzu, as it may not be suitable for those who are risk-averse.

The Direxion Daily AMZN Bull 2X Shares ETF is a leveraged play on Amazon Inc, which can amplify potential losses as well as gains.

Investors who are willing to take on high levels of risk may find Amzu to be a viable option, but it's essential to understand the potential consequences.

Check this out: Risk Tolerance Survey

The Leverage Shares 3x Amazon ETP Securities have a risk level that's hard to pin down, and that's because the data we have on them is limited and not guaranteed to be complete or accurate.

The data on these securities is provided by Morningstar, CoinGecko, and Isarvest GmbH, but Isarvest GmbH explicitly states that they don't guarantee the information and can't assure its completeness or accuracy.

The delayed stock prices for these securities are at least 15 minutes old, which can make it tough to get a real-time sense of their performance.

The Direxion Daily AMZN Bull 2X Shares (AMZU) provides 2x leveraged exposure to Amazon stock's daily price movement, less fees and expenses. It was launched on September 7, 2022.

The fund's volatility is likely to be higher than the underlying AMZN performance due to its daily compounding nature. This means that longer holding periods and higher AMZN volatility can significantly impact an investor's returns.

Here are some ETFs correlated to AMZN, which can be used to create a hedging strategy:

The GraniteShares 2x Long AMZN Daily ETF is a unique investment option that seeks to provide 2 times the cumulative return of Amazon (AMZN) for periods up to a day.

Keep in mind that it's not designed to provide 2 times the cumulative return for periods longer than a day.

This ETF is a leveraged fund, meaning it uses borrowed money to increase potential returns, which also increases the risk of significant losses.

If you're considering investing in this ETF, be aware that it will have an increase in volatility relative to the underlying AMZN performance.

This increased volatility can affect your returns, especially during periods of high AMZN volatility.

It's essential to understand that longer holding periods and higher volatility of AMZN can increase the impact of compounding on your returns.

Intriguing read: Return Stacking Etfs

The Direxion Daily AMZN Bull 2X Shares (AMZU) is an exchange-traded fund that mostly invests in consumer discretionary equity.

This fund provides 2x leveraged exposure, less fees and expenses, to the daily price movement for shares of Amazon stock. It was launched on Sep 7, 2022 and is issued by Direxion.

The Direxion Daily AMZN Bear 1X Shares (AMZD) seeks daily inverse investment results, making it very different from most other exchange-traded funds.

This fund's performance is affected by the volatility of Amazon stock, which can increase the impact of compounding on an investor's returns.

Here are some key facts about these two ETFs:

The Direxion Daily AMZN Bull 2X Shares (AMZU) has a record date of 12/23/2024, an ex date of 12/23/2024, and a pay date of 12/31/2024, with an income dividend of 0.28182.

Suggestion: 2024 Dogs of the Dow

When looking at ETFs, it's essential to understand their correlation. Correlation measures the strength of the relationship between two ETFs, and it can help you create investing strategies and portfolios.

ETFs correlated to AMZU include AMZD, WEBS, FNGD, QID, and SQQQ, with correlation coefficients ranging from 0.67 to 1.00. These ETFs can help you build a diversified portfolio or create an investing strategy that hedges an ETF with an uncorrelated or inversely correlated ETF.

The Pearson correlation coefficient ranges from -1 to 1, with 1 indicating perfect positive correlation and -1 indicating perfect negative correlation. In the case of the ETFs correlated to AMZU, most have a correlation coefficient above 0.67, indicating a strong positive relationship.

You can use ETF correlations to compare correlated or related ETFs to find one with a lower expense ratio or higher trading volume. For example, the expense ratio for AMZD and WEBS is 0.95%, while the expense ratio for SPDNDirexion Shares ETF Trust is 0.45%.

Here's a list of ETFs correlated to AMZU, along with their expense ratios and correlation coefficients:

Understanding ETF correlations can help you make informed investment decisions and create a diversified portfolio.

The objective of Amazon Leveraged ETF is to track the daily performance of Amazon's common stock, specifically aiming to return 200% of the daily percentage change of the stock. This means if Amazon's stock price goes up, the ETF will try to go up by twice that amount.

The fund's exposures are subject to change, which can impact its performance and risk level. This is something to keep in mind if you're considering investing in this ETF.

The fund's objective is to provide daily investment results, before fees and expenses, that match 200% of Amazon's daily stock price movement. This is a key aspect to understand when evaluating the ETF's potential.

The performance of Leverage Shares 3x Amazon ETP Securities has been quite volatile over the years. The fund has seen a -11.79% performance in just one week.

In the past year, the fund has performed well, with a +9.89% return. This is a significant improvement from the previous year, which had a -94.21% return.

Here's a breakdown of the fund's performance over different time periods:

The fund's performance has been particularly strong in some years, such as 2023, where it saw a +259.37% return. In contrast, the fund had a -94.21% return in 2022.

It's worth noting that the fund's performance has been affected by the overall performance of Amazon's stock.

Expand your knowledge: Risk Return Tradeoff