Can somebody explain to me what the difference to an investor in regards to a normal ETF vs leveraged?
I'm not understanding how the leverage impacts the market price of the leveraged ETF. Is not the market price based off of investors perceptions like a stock and not the underlying assets? And would leveraging the assets within the ETF not actually change NAV in comparison to no leverage?
($100/10 shares = 100x leverage $10000/1000 shares = NAV of 10)
I'm in between finals and have a scattered mind right now so excuse me if I'm missing something obvious. I just don't get how the leverage is reflected in ETF price.
Submitted June 13, 2017 at 05:27PM by NatTayy http://ift.tt/2slzMxB
