[ZephyrBlu]

I understand how leverage works, just not in the context of an index fund or ETF.

From your description it sounds like the leverage is baked into it, so it's kind of like "safe" leverage in that you can't lose more than you have.

[krrrh]

This link explains it pretty well. There are other advantages from regular forms of margin too.

https://www.investopedia.com/terms/l/leveraged-etf.asp