ETFs, LICs, managed funds and leveraged ETFs
Compare fund structures and see why leveraged and inverse ETFs decay in choppy markets.
Module 17 of 26, ETFs, index funds and super. Lesson 4 of 6, about 16 minutes.
The takeaway
ETFs stay close to NAV because units are created and redeemed. LICs can trade at a discount or premium because shares are fixed. Leveraged ETFs decay in choppy markets because periodic resets compound volatility.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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