Leveraged ETFs are designed to amplify the returns of an underlying index, often aiming to achieve two or three times the daily performance. However, this magnification applies to both gains and losses, making them inherently riskier than their non-leveraged counterparts. Due to their use of financial derivatives and the daily rebalancing mechanism, leveraged ETFs can also experience decay or "beta slippage," leading to potential discrepancies between the expected return and the actual return over longer periods. Consequently, it's not advised to hold these ETFs for the long term. They're more suited for short-term trading or hedging strategies by experienced investors.