Leverage can do remarkable things. With enough leverage, a 20% return can be transmuted into 100%. Of course, in the math world whatever is given can also be taken away. Plenty of investors (professional and amateur) have blown themselves up with leverage and that boost to returns in good times can turn around and bite ferociously when the play is wrong. Just ask the likes of Lehman Brothers what can happen when someone is highly leveraged and hits a rocky patch in the road.
Investors have always had some tools at hand to add leverage to their investment decisions. From buying on margin, to investing in options, to playing the commodity markets, these are all ways of making $1 of investment capital go a little further in exchange for higher risks. Relatively recently, though, financial services firms have come out with new products for investors - highly-leveraged ETFs that look to multiply the returns of underlying markets.
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http://stocks.investopedia.com/stock-analysis/2010/How-To-Double-Or-Triple-Your-Bets-On-Financials-FAS-FAZ-SKF-SEF-XLF-VFH-UYG0907.aspx
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