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Why are leveraged ETFs from ProShares and Rydex Investments categorized as fixed weight indexes?

April 26, 2017categorized ETFs fixed indexes investments leveraged proshares rydex weight

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Why are leveraged ETFs from ProShares and Rydex Investments categorized as fixed weight indexes?

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Fixed weighting can be at the security level, the industry level, or at the market level. When a fund is designed to achieve a return of 2 times the market, it has a fixed market leverage of “plus two.” When a fund is short the market, it has fixed market leverage of “negative one”.