The Perils of Leverage

You're almost sure to lose with funds that let you magnify your bets.

By Russell Wild

Depressed that your portfolio has stagnated for a decade? Cheer up. If you'd bought a leveraged fund, you would have done far worse. A leveraged fund lets you double or even triple the results of an index -- or lets you wager against an index with equal vigor. You can place bets on the broad market or on narrow sectors.

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