Despite expected ups and downs, the overall market trend has moved higher in the past 5 years. If you’ve determined to gain broad exposure to the market, long ETFs might be a good investment for you.

How Much Do You Know About Long ETFs?

With index ETFs, you can gain exposure to multiple companies, included in the index itself. Long index ETFs are for investors who think the index will go up.

Check out this example:

David is confident that the stock market will go up and plans to make a long-term investment. He has limited experience with investing and is not confident in looking for undervalued stocks on his own. Therefore, he decides to buy long ETFs on the S&P 500 index. As he is not a risk taker, he limits the scope to 1x leverage. Finally, he buys 100 shares of XYZ that seeks 100% of the performance of the S&P 500 index.

If the S&P 500 goes up by 1%, his ETF shares will go up about 1% as well. In contrast, if the index slips by 1%, his ETF shares will decline by about 1%.

The Risks You Should Consider Before Investing

It's very important to understand the risks of long index ETFs. If you buy an ETF on the S&P 500 index at $65, the most loss you can incur is the amount you invested.

How Do You Trade a Long Index ETF on Webull?

• Go to the "ETFs Top Movers" list on Webull.
• Choose the index you want to trade.
• Filter the long ETFs according to your market expectations.

Bottom Line

With any investment, you risk losing all or possibly more of your initial investment. Long index ETFs can help provide broad market exposure and tend to perform better as the market moves higher.