Leveraged ETFs.
Made Simple.

A leveraged ETF (also called an LETF) is a fund that uses derivatives (like futures or swaps) to aim for 2x or 3x the daily return of an index, or inversely replicate it. For example, if an index is up 1%, a 2x leveraged ETF targets +2% that day. On the other hand, if the index is down 1%, a 1x inverse ETF targets +1% instead.

It’s an automated, risk-managed investment strategy that dynamically manages volatility and drawdowns based on real-time market trends and your chosen risk level.

• When markets are strong, the strategy leans into leveraged ETFs like TQQQ and FNGO to aim for higher gains.
• If warning signs flash, we hedge via an inverse ETF like SQQQ.

All of this happens without manual trading: our AI constantly monitors market risk and adjusts your portfolio accordingly.

It’s like having a smart dial that turns up exposure during sunny market weather and turns it down as clouds gather—so you can ride momentum while buffering losses.

We focus on leveraged ETFs because they have the potential for big returns. For example, TQQQ has delivered an average return of 41% per year since it started. That’s the kind of growth that gets us excited — and if it excites you too, you’re exactly the type of client we’re built for.  ‍

But it’s important to understand both sides of the story. While TQQQ has delivered strong long-term results, it also lost 80% in 2022, which is completely unacceptable from an investment standpoint. That’s exactly the kind of risk we work hard to manage. Our main focus is protecting you from those big losses by using automated tools to adjust how much of your portfolio is invested based on market conditions and your personal risk tolerance.

To give you some perspective, the S&P 500 has an average annual volatility of 20% — think of volatility as a way to measure how much risk you’re taking. With our technology, you decide how much risk you’re comfortable with — less, more, or about the same as the S&P 500 — and our AI takes care of the rest to keep your portfolio on track, with the goal of delivering better returns than the level of risk taken on.

Learn about why loss minimization is the key to building wealth.

These funds reset their leverage daily. That means their compounding can work against the investor if returns are volatile. Even if the index ends flat over time, the LETF can steadily lose value due to “volatility drag” and regular rebalancing. This is why it’s extremely important to have a robust and systematic risk management system in place when trading LETFs.

Leveraged ETFs are typically used for short-term trades. Because of the daily reset, holding longer in choppy markets can produce different returns than what most investors expect.

However, alphaAI Capital turns typical short‑term tools into disciplined, long‑term engines by:

• Monitoring risk signals in real-time.
• Adjusting how much leverage to use in different market “modes” (Surge, Steady, Cautious, Defense).
• Pairing leveraged long ETFs with strategic inverse shorts to control volatility and hedge downturns.