I've recently noticed in my IB terminal that many ETFs have leverage lower than 1. I understand that some ETFs have leverage higher than 1 for example TQQQ because they mainly use derivatives but I don't understand what's the reason for leverage lower than 1.

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    $\begingroup$ It probably means that a fraction of the capital is held in cash, instead of being invested. $\endgroup$ Jun 19, 2018 at 15:12
  • $\begingroup$ ARKW allocates 99% of funds in stocks link and only 0.5% of funds in cash on short position. $\endgroup$
    – Michael Dz
    Jun 19, 2018 at 15:58
  • $\begingroup$ If you hover your mouse pointer over the word LVRG it should display a 1 sentence description of what that column represents. If it doesn't or it is not clear you should contact IB. $\endgroup$
    – Alex C
    Jun 19, 2018 at 18:04
  • $\begingroup$ Knowing how careful IB is in covering its a**, I will guess that this how much margin IB will allow you to use when you buy this security. LVRG 1 is normal, 0.3 means you are allowed very little margin (30% of normal) and must put up the rest in cash to buy ARKK. $\endgroup$
    – nbbo2
    Jun 19, 2018 at 18:48
  • $\begingroup$ If you do what I told you, you will see "Leverage Debt divided by common equity. For more AltaVista ETF research information, right click on an ETF select Analytical Tools and then select ETF Term Sheet". $\endgroup$
    – Alex C
    Jun 20, 2018 at 13:32


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