MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETNs (BERZ)

Overview

The MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETNs (BERZ) provides -3x leveraged exposure to a market-cap-weighted index of FANG and innovation companies. It offers inverse exposure, meaning it aims to deliver gains when the underlying index declines.

Reputation and Reliability

REX Shares is known for offering leveraged and inverse ETFs, catering to sophisticated investors. Their reputation is built on providing clearly defined leveraged strategies.

Management Expertise

REX Shares focuses on niche investment strategies and has experience in managing complex leveraged and inverse products.

Goal

The ETN seeks to provide investors with three times the inverse of the daily performance of the Solactive FANG & Innovation Index.

Investment Approach and Strategy

Strategy: The ETN tracks the Solactive FANG & Innovation Index on a daily basis with -3x leverage. It's designed for short-term trading and not for long-term holding.

Composition The ETNu2019s value is derived from financial contracts and derivatives related to the Solactive FANG & Innovation Index, not direct holdings of stocks.

Market Share: Data not readily available for precise market share of this specific leveraged ETN.

Total Net Assets (AUM): 33500000

Key Competitors

• SQQQ
• TQQQ
• LABD
• TECS

Competitive Landscape

The leveraged ETF market is highly competitive. BERZ's competitiveness depends on its tracking efficiency and expense ratio compared to similar inverse leveraged products. Advantages may include a specific focus on the FANG & Innovation sector, while disadvantages may arise from the inherent risks of leveraged investments.

Historical Performance: Historical performance can fluctuate significantly due to the leveraged nature. Data must be sourced directly from financial data providers.

Benchmark Comparison: The ETN aims to provide -3x the daily inverse performance of the Solactive FANG & Innovation Index; therefore, the benchmark is the inverse of this index multiplied by 3.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume can vary and should be sourced from a financial data provider, such as Bloomberg or Yahoo Finance.

Bid-Ask Spread

The bid-ask spread also fluctuates based on market conditions; refer to real-time market data for current spread.

Market Environment Factors

Economic conditions, interest rates, technological advancements, and regulatory changes impacting the FANG and innovation sectors are crucial. Market sentiment also plays a significant role.

Growth Trajectory

Growth depends on the performance of the Solactive FANG & Innovation Index and investor demand for inverse leveraged products. Changes in the index's composition and leverage factor can impact its trajectory.

Competitive Edge

BERZ offers a highly leveraged inverse exposure to the FANG and Innovation sector, which differentiates it from non-leveraged ETFs. Its advantage lies in providing sophisticated investors a tool for short-term hedging or speculation on the decline of high-growth tech stocks. However, this leverage also amplifies risks, making it less suitable for risk-averse investors. Success depends on accurately predicting short-term market movements in the targeted sector.

Volatility

Due to its -3x leverage, BERZ exhibits very high volatility, significantly exceeding that of the underlying index.

Market Risk

The ETN is subject to risks associated with the FANG and innovation sectors, including technological disruptions, regulatory changes, and competitive pressures. The leveraged nature exacerbates these risks.

Ideal Investor Profile

BERZ is suitable for sophisticated investors with a high-risk tolerance who actively monitor their investments and understand the complexities of leveraged and inverse products. These are short-term trading instruments.

Market Risk

BERZ is best suited for active traders seeking short-term tactical positions and not for long-term investors or passive index followers.

The MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETNs (BERZ) is a leveraged product designed to provide three times the inverse of the daily performance of the Solactive FANG & Innovation Index. It is tailored for sophisticated investors seeking short-term exposure to the FANG and innovation sectors. Due to its leveraged nature, it is inherently risky and is not appropriate for long-term holdings. The ETN's performance depends heavily on the accuracy of predicting short-term market movements in the targeted sector.

Data Sources:

• REX Shares Website
• Solactive Website
• Bloomberg
• Yahoo Finance

Disclaimers:

This data is for informational purposes only and should not be considered financial advice. Leveraged and inverse ETFs are inherently risky and may not be suitable for all investors. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.