A leveraged ETF seeks a multiple of the return of an index over a stated reset period (often daily). Because returns compound, results over longer horizons can differ materially from the stated multiple.

When returns swing up and down, compounding can reduce long-run performance versus a simple multiple of the index’s cumulative return. This effect can be larger for higher leverage and more volatile underlyings.

Reset refers to how often the leverage target is rebalanced back to its intended exposure. Different reset frequencies can change path dependence and risk/return characteristics.