Inverse and leveraged indices

Inverse indices are designed to provide the inverse performance of the underlying index, representing a short position in the underlying index. Leveraged indices are designed to generate a multiple of the return of the underlying index in situations where the investor borrows funds to generate index exposure beyond their cash position.

Inverse and leveraged index methodologies

 * S&P 500 Inverse Daily Index
 * S&P 500 2x Inverse Daily Index
 * S&P 500 2x Leverage Daily Index
 * S&P U.S. Indices Methodology

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Articles

 * Warning: Leveraged and Inverse ETFs Kill Portfolios Paul Justice, Morningstar, 1/22/09
 * Research note: Why leveraged ETFs can pack a surprise, Vanguard Investment Counseling & Research 6/22/09