Want a leveraged ETF but short on time? This one lasts just an hour

Defiance's U.S. Securities and Exchange Commission filing comes as regulators review a category of funds that includes such leveraged vehicles. The number of leveraged ETFs aiming to deliver double the return on individual stocks over a single day continues to multiply.

If users roll any gains into successive hours, and the market continues to work in their favor, compounding could allow them to capture larger gains over a single day than they would from simply buying the existing leveraged ETFs, Jablonski added.

If, however, the stock reverses course or follows a choppy path to a one-day gain, investors could end up with a loss if they hang on to these hourly products, Jablonski said.

The proposed products, which could begin trading in November if regulators do not object, are another new frontier in leveraged ETFs. The SEC has so far blocked proposed leveraged products offering 3x or 5x the daily returns of an underlying stock.