By TheStreet Staff What Are Leveraged ETFs & How Do They Work? Like traditional exchange-traded funds, leveraged ETFs are pooled investment vehicles that allow investors to gain exposure to many related assets with a single investment. Also like traditional ETFs, most inverse ETFs track a stock index (like the Dow Jones Industrial Average) or a particular industry (like real estate or transportation). Unlike their traditional counterparts, however, leveraged ETFs are designed to amplify daily returns by using derivatives (like swaps and options) and leverage (borrowed money). Most leveraged ET…