Top ASX leveraged ETFs to watch in 2025

What are leveraged ETFs?

To understand what a leveraged ETF is, we first need to know what a regular ETF is. These represent a single point of entry into a range of financial markets. For example, instead of buying 200 shares individually, you can gain access to all of them through an ETF that tracks the ASX 200.

Leveraged ETFs, also known as geared ETFs in Australia, are exchange-traded funds that are designed for short-term market price movements.

Because of this, they’re better suited to CFD traders than share traders, unless investors are highly experienced and willing to take a position on short-term movements, understanding that losses are magnified.

How do returns on leveraged ETFs work?

Unlike traditional ETFs, which tend to follow their underlying markets 1:1, leveraged ETFs follow a 2:1 or even 3:1 approach.

Let’s say a leveraged ETF tracks the ASX 200. This means it’ll track the 200 shares that constitute the ASX 200, mimicking the underlying index’s performance. However, it uses borrowed funds to amplify potential shareholder returns (or losses), thereby aiming to increase profits by two or three times. In contrast, a regular ETF only holds shareholder equity (no debt), simply tracking the underlying asset class or index.

Using futures and options (most typically), fund managers will seek to deliver returns that exceed the assumed debt.

What are leveraged inverse ETFs?

Leveraged inverse ETFs are designed to move in the opposite direction of the assets they track.

• If the underlying index/asset goes up, the inverse ETF goes down
• If the underlying index/asset goes down, the inverse ETF goes up

For example, a leveraged inverse ETF on the ASX 200 would rise in value when the ASX 200 falls.

Traders often use leveraged inverse ETFs to hedge or speculate on a downturn. Much like regular leveraged ETFs, they’re not designed for long-term buy-and-hold strategies.

Advantages and risks of leveraged ETFs

While leveraged ETFs can deliver amplified returns, they can just as easily deliver magnified losses. In addition to this, there are other advantages and risks of leveraged ETFs:

Advantages of leveraged ETFs

• Ease of access: You can get leveraged exposure by trading a leveraged ETF through a broker like IG – no margin account, futures or options needed
• Hedging tool: Inverse leveraged ETFs can act as insurance for portfolios in market downturns
• Liquidity and flexibility: Most are traded on major exchanges (like the ASX) and can be bought or sold instantly during market hours

Risks of leveraged ETFs

• Daily reset and compounding risk: Leverage is reset daily. Over longer periods, especially in volatile or ‘zig-zag’ markets, the ETF’s performance can drift away from what you expect
• Not suitable for long-term holding: Because of compounding and volatility decay, leveraged ETFs are generally designed for short-term trading, not buy-and-hold strategies
• Higher costs: Management fees are usually higher than in plain ETFs. Daily rebalancing also means extra trading inside the fund, which can eat into returns
• Market timing risk: They only work well if you predict direction and timing correctly. If you’re wrong, losses rack up quickly

Top 5 ASX leveraged ETFs to watch in 2025

We picked these five ASX-listed ETFs to watch for a few reasons, including:

• Volatility: This equals CFD trading opportunities, and all five have had ample volatility in the past three to six months
• Macroeconomic sensitivity: Index-level leveraged ETFs amplify reactions to macro prints, earnings and central bank news – great for event-driven CFD plays
• Execution convenience: All are available to trade on the ASX – you can scalp, day trade or swing trade with CFDs on these tickers

Learn more about swing trading in the video below: 

Overview of the leveraged ETFs in this article

Every leveraged ETF in our article can be share traded or traded via CFDs with us.

1. BetaShares Geared Australian Equities Complex ETF (ASX: GEAR)

Exposure: S&P/ASX 200 index

Assets under management: A$530.86 million¹

The BetaShares Geared Australian Equities ETF is one of the best-known leveraged funds on our local exchange. It gives share traders geared exposure to the performance of the S&P/ASX 200, which represents the largest companies listed in Australia.

Unlike a traditional ETF that simply mirrors the index, GEAR employs an internal gearing strategy – it borrows capital within the fund to amplify returns.

The fund is particularly responsive during local macro or commodities-driven news cycles, as Australia’s index is heavily weighted towards resources and banks.

For traders following Reserve Bank of Australia (RBA) policy announcements, iron ore price shifts or banking sector results, GEAR provides a magnified vehicle to trade those moves without needing to borrow on margin directly.

Highlights:

• The leverage ratio isn’t fixed, but typically ranges between two and three times the daily movement of the ASX 200²
• This means that if the market rises 1%, GEAR might rise closer to 2% – 2.5%, while a 1% decline would translate into a proportionately larger fall
• Daily rebalancing can cause ‘decay’ in sideways markets, meaning the ETF can underperform over longer horizons. Losses are also magnified, so CFD traders should use solid risk controls
• Its value has increased by 26.82% over the past six months, as of 23 September 2025³

2. BetaShares Wealth Builder Nasdaq-100 Geared (30% – 40% LVR) (ASX: GNDQ)

Exposure: Nasdaq 100 index

Assets under management: A$44.53 million⁴

The BetaShares Nasdaq-100 Wealth Builder Geared ETF offers geared exposure to the tech-heavy Nasdaq-100 index.

Unlike ‘ultra’ leveraged ETFs that reset at 2x or 3x daily, GNDQ maintains a target gearing ratio of 30% – 40% loan-to-value, which translates into exposure of roughly 1.3 – 1.6 times the index.⁵ This more moderate gearing makes it less extreme than some daily reset products, but still gives traders amplified exposure to US tech moves.

What sets GNDQ apart for active traders is its balance of leverage and stability. Because the gearing isn’t extreme, it tends to avoid the most severe decay issues that plague higher-multiple daily leveraged ETFs.

However, it still provides enough volatility to matter, often swinging by larger percentages than the underlying Nasdaq overnight.

This combination makes it useful for CFD traders who want leveraged exposure but without the ‘all-or-nothing’ dynamics of ultra-short funds.

Highlights:

• The fund trades on ASX hours, but its underlying index moves overnight in the US session. This can mean large opening gaps in the local market
• Currency exposure adds another variable, though BetaShares structures typically hedge out some of the FX issues
• 27.04% growth in fund value over six months (as of 23 September 2025), with plenty of volatility in between⁶

3. Global X Ultra Short Nasdaq-100 Complex ETF (ASX: SNAS)

Exposure: Nasdaq-100 – inverse

Assets under management: A$60.97 million⁷

Global X’s Ultra Short Nasdaq-100 ETF is an inverse leveraged fund designed to deliver magnified returns when the Nasdaq-100 index falls. In other words, it rises when the underlying US tech benchmark declines, and falls when it rallies.

The ‘ultra’ designation signals a leverage multiple greater than –1x, meaning traders can expect amplified inverse daily returns. This makes SNAS a tactical instrument for those wanting to bet against US technology stocks without directly shorting the index.

CFD traders like inverse ETFs because they simplify shorting. Instead of borrowing stock or using options, you can buy an inverse ETF that rises when the market falls. With SNAS, the magnification factor intensifies this effect, producing large moves from relatively small Nasdaq shifts. That volatility makes it attractive for intraday speculation.

Highlights:

• If the Nasdaq keeps trending higher, losses accumulate quickly, and the daily reset mechanism can accelerate decay
• Traders also need to manage the time-zone challenge, as US market moves are only reflected in ASX prices at the next open. This creates gap risk, which can either deliver windfalls or wipeouts depending on positioning
• The fund’s value has decreased 39.63% over the past six months (as of 23 September 2025), leaving ample opportunities for CFD traders to make their move⁸

4. BetaShares US Equities Strong Bear (Currency-Hedged) Complex ETF (ASX: BBUS)

Exposure: S&P 500 index – inverse

Assets under management: A$134.06 million⁹

BetaShares’ US Equities Strong Bear Fund is one of the most heavily traded inverse leveraged ETFs on the ASX.

It delivers magnified negative exposure to the US S&P 500 index, enabling Australian traders to profit when Wall Street falls. Importantly, it’s currency-hedged, so returns are not significantly affected by AUD/USD moves.

BBUS is particularly responsive to major US macro factors, such as Federal Reserve interest-rate decisions, CPI releases and geopolitical shocks.

Because the fund is geared, a 1% – 2% daily move in the S&P 500 can translate into several percentage points of movement in BBUS. For short-term CFD trades, that level of volatility provides multiple opportunities to profit.

Highlights:

• Although hedging reduces FX exposure, it can add costs and may not perfectly offset currency impacts
• The fund has dropped 39.01% in value over the past six months (as of 23 September 2025), with sufficient volatility for trading in that time¹⁰

5. BetaShares Australian Equities Strong Bear Complex ETF (ASX: BBOZ)

Exposure: S&P/ASX 200 – inverse

Assets under management: A$247.95 million¹¹

The BetaShares Australian Equities Strong Bear Fund is a geared inverse ETF that amplifies downward moves in the Australian share market. It aims to deliver magnified negative returns relative to the S&P/ASX 200.

Like other leveraged products, the exact multiple varies daily, but typically ranges between 2x and 2.75x. That means a 1% fall in the index could result in a 2% – 2.75% gain in BBOZ, while a rise in the market leads to amplified losses.¹²

One of BBOZ’s key benefits for active traders is that it provides direct leveraged downside exposure to the local equity market. That makes it highly relevant for trading around domestic events such as Reserve Bank statements, GDP or inflation data, or resource price shocks.

Since the ASX 200 is heavily weighted toward mining and banking, BBOZ often reacts sharply to commodity news or sector-specific headlines.

Highlights:

• Liquidity is generally good, particularly during volatile sessions, but spreads can widen in quieter trading
• The fund has lost 24.85% value over the past six months, but gained 3.84% over the past month (as of 23 September 2025), indicating substantial volatility¹³

How to trade ASX leveraged ETFs with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX leveraged ETFs on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX leveraged ETFs
3. Choose the ETFs you want to buy
4. Determine how many units you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about leveraged ETFs

Footnotes
 

1. TradingView, September 2025
2. BetaShares, September 2025
3. TradingView, September 2025
4. TradingView, September 2025
5. BetaShares, September 2025
6. TradingView, September 2025
7. TradingView, September 2025
8. TradingView, September 2025
9. TradingView, September 2025
10. TradingView, September 2025
11. TradingView, September 2025
12. BetaShares, September 2025
13. TradingView, September 2025