This change is part of an ongoing effort to align the products and services we offer with our investors’ focus on the long term. These investments, which are generally incompatible with a buy-and-hold strategy, run counter to this long-term focus.

What are leveraged and inverse investments?

Leveraged products are designed to double or triple the performance—both gains and losses—of a particular index over a stated period of time. Multipliers such as “2x” or “3x” are common in their names. Inverse, or “short,” products seek to deliver the opposite of an index’s performance over a given time period, while leveraged inverse funds seek to deliver multiples of the opposite of an index’s performance over a given period of time.

Leveraged and inverse mutual funds, ETFs, and ETNs are extremely speculative in nature and can be quite volatile. Most are designed to deliver their stated returns for only a short period (for example, 1 day or 1 month). Their extremely short-term, speculative nature is contrary to the long-term focus shared by most Vanguard investors.

Already own these investments?

If you already own leveraged or inverse investments, you don’t need to do anything. You can continue to hold them, choose to sell them, and transfer them in kind from or to other institutions. But, as of January 22, you won’t be able to make new purchases in your Vanguard account.

Get more detailed information about these investments


All investing is subject to risk, including the possible loss of the money you invest.