The etf-leverage-simulator synthesizes long-term leveraged ETF returns.
Leveraged ETF's are exchanged traded funds that use derivatives and debt to magnify the returns of an underlying index. Such funds apply a leverage multiplier (typical 2x or 3x) to amplify an index's actual returns on a daily basis.
This application allows the user to select an underlying index and then run a simulation to see how an ETF (applying daily leverage to the underlying index) would have performed over the same period.
First, use Underlying Index to load actual market returns for a specified index or security.
- Enter a symbol for a market index or security.
- Select a date range via Start/End Date
- Click Fetch Data to retrieve the actual daily closing prices for the specified security
Then, adjust the ETF Parameters to run simulations.
- The Leverage Multiplier changes the multiplication factor applied to daily returns.
- The Expense Ratio changes the yearly expense overhead of the simulated ETF.