MicroSectors Solactive FANG Innovation 3X Leveraged ETNs (BULZ)

Overview

The MicroSectors Solactive FANG Innovation 3X Leveraged ETNs (BULZ) is an exchange-traded note that seeks to provide three times the daily leveraged exposure to the Solactive FANG Innovation Index. The index tracks 15 leading technology and consumer discretionary companies that are considered innovative. The ETN offers amplified returns and is designed for sophisticated investors.

Reputation and Reliability

REX Shares is a provider of leveraged and inverse exchange-traded products. While they specialize in this area, leveraged products are inherently risky.

Management Expertise

REX Shares focuses on creating and managing leveraged and inverse products, requiring expertise in derivatives and risk management.

Goal

To seek three times (3x) the daily leveraged return of the Solactive FANG Innovation Index.

Investment Approach and Strategy

Strategy: The ETN employs a leveraged strategy aiming to amplify the daily returns of the Solactive FANG Innovation Index through the use of financial derivatives.

Composition The underlying index is composed of stocks from technology and consumer discretionary sectors deemed to be innovative. The ETN itself does not hold stocks but tracks the index through derivative contracts.

Market Share: BULZ's market share within the leveraged technology ETN space is moderate.

Total Net Assets (AUM): 185600000

Key Competitors

• TECL
• UPRO
• TQQQ

Competitive Landscape

The leveraged ETF/ETN space is competitive. BULZ competes with broad-market and tech-specific leveraged funds. Advantages include a focused portfolio of innovative companies. Disadvantages include high volatility and potential for significant losses due to the leveraged nature.

Historical Performance: Past performance is not indicative of future results. Leveraged ETNs are known for their volatility.

Benchmark Comparison: The performance is benchmarked against 3x the daily return of the Solactive FANG Innovation Index. Deviations may occur due to fees and tracking error.

Expense Ratio: 0.95

Average Trading Volume

The average daily trading volume for BULZ indicates moderate liquidity.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and demand for the ETN, implying a small cost to trade.

Market Environment Factors

Economic growth, interest rates, technology sector performance, and investor sentiment towards innovation influence BULZ. Increased volatility in the underlying index will amplify gains and losses.

Growth Trajectory

Growth is tied to the performance and adoption of innovative technologies and consumer discretionary products. The ETN's leverage can magnify gains and losses relative to the index.

Competitive Edge

BULZ provides leveraged exposure to a focused basket of FANG and innovation companies, which can be appealing to investors seeking amplified returns from this specific segment. Unlike broad market leveraged ETFs, BULZ concentrates on companies at the forefront of innovation. This focus differentiates it from competitors, but its leveraged nature makes it highly sensitive to market fluctuations and carries considerable risks. Sophisticated investors who understand the risks may find this focus attractive.

Volatility

BULZ exhibits high volatility due to its leveraged nature. Investors should expect large price swings.

Market Risk

Significant market risk exists due to the leveraged exposure. Declines in the underlying index are magnified, potentially leading to substantial losses, especially with daily resetting of leverage.

Ideal Investor Profile

Ideal investors are sophisticated traders with a high-risk tolerance who understand the risks associated with leveraged ETNs. These investors should have a short-term investment horizon.

Market Risk

BULZ is more suitable for active traders seeking short-term tactical exposure to the FANG innovation sector, not for long-term investors due to the effects of compounding on leveraged products.

MicroSectors Solactive FANG Innovation 3X Leveraged ETNs (BULZ) aims to deliver three times the daily return of the Solactive FANG Innovation Index. The ETN is designed for sophisticated investors seeking amplified exposure to innovative technology and consumer discretionary companies. Its leveraged nature significantly increases risk, making it suitable only for short-term trading strategies. Investors should carefully consider the risks associated with leveraged products before investing. Due to its leveraged nature, long-term performance may significantly deviate from 3x the index return.

Data Sources:

• REX Shares Website
• Solactive Website
• SEC Filings
• Bloomberg
• Morningstar

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Leveraged ETNs are complex financial instruments and involve a high degree of risk. Investors should consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.