A leveraged ETF acts as a multiplier for the performance of the fund's underlying index. Morrison said she believes that both retail and institutional investors use Direxion's leveraged funds, though the majority of the users are probably retail. The leveraged funds are viewed with skepticism by some regulators and financial advisors. The leveraged funds are based on single-day derivatives, and holding them for a longer period time means could result in the performance diverging from the label. "If you don't trade them daily, you need to make a decision daily," Morrison said.

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