Leveraged Fund

A leveraged fund indicates whether a fund employs leverage––typically through the issuance of debt, preferred shares, or by using other derivatives––to increase the amount of exposure to a certain investment or group of investments.

An ETF is classified as leveraged if it's identified as such under the Investment Objective or the Investment Strategy section of its prospectus. A closed-end fund is identified as leveraged if it has a leverage percentage greater than zero.