Leveraged ETFs in Low-Volatility Environments Leveraged ETFs (such as SPXL – (Direxion Daily S&P 500 Bull 3X Shares) offer amplified exposure to the S&P 500, promising high returns but exposing investors to volatility drag caused by daily rebalancing. This effect can significantly erode performance over longer horizons, particularly during periods of elevated market volatility. Inspired by recent research, The Volatility Edge, A Dual Approach For VIX ETNs Trading, focused on volatility-linked ETNs, we propo ...