Direxion leveraged ETFs use financial derivatives to amplify daily returns, typically offering 2x or 3x the performance of their underlying index.
Due to daily reset mechanisms and compounding effects, leveraged ETFs like SPXL are generally not recommended for long-term holdings beyond a few days or weeks.
Inverse ETFs aim to profit from market declines by providing returns that are opposite to their benchmark index, often using short positions and derivatives.