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There's now a juiced-up way to get 4 times the return of the S&P 500 — but it comes with many risks - TL;DR CNBC

There's now a juiced-up way to get 4 times the return of the S&P 500 — but it comes with many risks

Publishing timestamp: 2023-12-05 09:54:37


Summary

The Bank of Montreal has launched the Max SPX 500 4x leveraged ETNs, which will track four times the total return of the S&P 500. These notes will be the highest leveraged exchange traded product in the U.S. The launch comes at a time when retail investors and asset management firms are showing interest in more volatile products. However, there are risks associated with such fast-paced strategies, and investors should be aware that these leveraged products are designed for short-term trading and may not perform as expected over longer periods of time. ETNs also have credit risk and are more expensive than traditional index funds.


Sentiment: MIXED

Tickers: SOXL

Keywords: exchange-traded fundsdirexion daily semiconductor bull 3x sharesmarketsmontrealbreaking news: marketsbusiness newswall street

Source: https://www.cnbc.com/2023/12/05/theres-now-a-juiced-up-way-to-get-4-times-the-return-of-the-sp-500-but-it-comes-with-many-risks.html


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