The Big Take
‘100%’ Yields Are Fueling a Retail Boom in New Quick-Buck ETFs
Amateur investors are plunging into the complex world of derivatives-powered ETFs that can dangle huge payouts riding big-name stocks, among other goodies. Industry pros and regulators urge caution.
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Across platforms like TikTok, YouTube and Reddit, financial influencers are promoting a new way to speculate in the stock market — touting payouts that, at first blush, can top 100%, or more.
Known in the industry as derivatives-enhanced exchange-traded funds, they’ve become a big hit with retail investors who are piling into a slew of bold-faced trades, including those that amp up the daily returns of the hottest stocks on the planet.