This has been an interesting debate! There is a case to be made in favour of leveraged ETFs in certain situations of course. However, here’s Freetrade’s position when it comes to leveraged ETFs.
As a general rule, we don’t think that margin / leverage exposure is suitable for our audience as we’re building a service for first time investors. We’ve explained this principle in more detail here -
The FCA also seems to consider these securities as unsuitable for less experienced investors. We’re not required to do an eligibility assessment in order to give investors access to stocks that’re traded on the ‘main market’ e.g. in the FTSE 250. But we would be required to do an assessment if we wanted to offer leveraged ETFs.
So at the moment, we have no plans to add this type of ETF to our stock universe.