Leveraged ETFs: a whole new way to invest in big tech

It's not surprising the big US technology stocks are among the most traded on the moomoo Australia platform, or that tech-focused exchange-traded funds are as well.

But way up high on our list of most traded are a series of ETFs issued by US firm GraniteShares.

The '2x' means if the underlying stock price (such as Nvidia or Tesla) rises, then the ETF will rise or fall twice as much, and if the stock falls, then the ETF will drop or rise twice as much.

If you choose a 'long' ETF then the value of your investment will follow the underlying stock, rising when it rises and falling when it falls. If you invest in a 'short' ETF then the opposite will happen, when the stock rises the value of your investment will fall.

What these ETFs do is give you much more choice and versatility when it comes to investing and trading in the big US tech stocks, which are the most valuable in the world and have performed amazingly over the past few years. You don't just have the stock to invest in and hope for its rise over time. You can accelerate that by investing in a long ETF, or go the opposite way with a short ETF.

GraniteShares chief executive Will Rhind said the firm set out to disrupt the ETF marketplace and prove that innovation does not need to be expensive, at the same time as providing enhanced transparency and insights for a better trading experience.

And that's why moomoo is GraniteShares's exclusive cooperating broker in Australia. The simplicity, ease and sophistication of these ETFs match the purpose of the moomoo investment platform – to open up the world of investing to users and make investing easier.