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Both leveraged and inverse exchange-traded products (ETPs) are intended primarily for short-term trading or hedging strategies and are generally not suitable for retail investors and investors with long-term investment goals due to daily compounding and high volatility.

Leveraged ETPs are designed to deliver a multiple (e.g., 2× or 3×) of the daily performance of an underlying asset. For example, if the underlying index rises by 1% in a day, a 2x leveraged ETP could aim to increase by 2%.

While leverage can magnify potential gains, it also amplifies losses, making these products highly volatile and riskier than non-leveraged ETPs. Additionally, daily compounding can affect returns over longer periods, regardless of the performance of the underlying assets.

Leverage is not available for crypto ETNs.

Inverse ETPs are designed to deliver the opposite daily performance of an underlying asset. For example, if the underlying index falls by 1% in a day, a 1× inverse ETP could aim to increase by 1%.

Inverse ETPs, while offering potential profit from asset declines, are highly risky. Losses are magnified if the asset rises, and daily compounding can negatively impact long-term returns regardless of the asset's performance.

Inverse strategy is not available for crypto ETNs.