Are leveraged ETFs making biotech stocks sick?

Rafe Swan | Getty Images

Exchange-traded funds that have the very specific task of providing double the returns of biotech stocks with the use of leverage may be exasperating volatility in the sector and in turn, the whole stock market, according to Jon Najarian, co-founder of

The funds in focus are the ProShares Ultra Nasdaq Biotechnology ETF and the Proshares UltraShort Nasdaq Biotech ETFs.

Najarian explains the phenomenon here: