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Glossary ยท Leverage

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On this page

  • Definition
  • Used in ArthaPilot
  • Related terms

Definition#

Leveraged ETFs reset their target leverage each day, causing multi-day returns to diverge from a simple multiple of the benchmark.

Used in ArthaPilot#

  • Leveraged ETF analysis
  • Leverage analysis docs

Related terms#

  • LETF (leveraged ETF)
  • Kelly criterion
  • Growth-optimal leverage (k*)
  • Volatility drag
  • Fama-French factors
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